ECCA in Arizona
Arizona had its legislature pass an opt-in bill, which the governor then vetoed. Also known as the Federal Scholarship Tax Credit (FSTC), the program was enacted as IRC §25F and takes effect January 1, 2027.
- Governor
- Katie Hobbs
- Democrat
- Status
- Governor vetoed
- As of 2026-01-16
- Program begins
- January 1, 2027
- Federal tax credit live
What's happening with ECCA in Arizona
Arizona's legislature passed a bill to opt the state into the federal Educational Choice for Children Act, but Governor Katie Hobbs vetoed it on 2026-01-16. Vetoed SB 1106 pending IRS regulations.
Unless the legislature overrides the veto or the governor reverses course, Arizona will not have designated Scholarship Granting Organizations when ECCA goes live on January 1, 2027. Arizona families would not be eligible for ECCA scholarships, even though donors anywhere — including in Arizona — can still claim the federal tax credit by giving to SGOs in participating states.
In practical terms: the federal tax dollars that Arizona donors choose to redirect to scholarships will fund students in other states instead of staying in Arizona communities. Local advocates, parents, and taxpayers can urge Arizona's leadership to revisit the decision before the program begins.
Frequently asked questions about ECCA in Arizona
Does Arizona participate in ECCA?
Not currently. Arizona's legislature passed an opt-in bill, but Governor Katie Hobbs vetoed it on 2026-01-16. The state would need either a veto override or a reversal from the governor to participate.
Who is the governor of Arizona and what is their position on ECCA?
Governor Katie Hobbs (Democrat) vetoed the legislature's opt-in bill. Vetoed SB 1106 pending IRS regulations.
Can Arizona residents donate to an SGO and claim the federal tax credit?
Beginning January 1, 2027, any U.S. taxpayer can claim a federal income tax credit of up to $1,700 per tax return for donations to a qualifying Scholarship Granting Organization, regardless of the state they live in. Because Arizona is not currently participating, donations from Arizona residents would need to go to SGOs in opted-in states — funding scholarships for students in those states rather than in Arizona.
When does the ECCA program begin?
The Educational Choice for Children Act program begins on January 1, 2027. Donations made on or after that date are eligible for the federal tax credit. Each participating state's governor must submit a list of qualifying Scholarship Granting Organizations to the U.S. Treasury by January 1 of each participating year.
Other states with the same status
States that have also governor vetoed.
Recent Arizona ECCA / FSTC news
Coverage of Arizona’s Federal Scholarship Tax Credit decisions and developments.
Learn more about ECCA
In-depth guides on how the program works, who qualifies, and how to participate.
- What is ECCA / FSTC?A complete guide to the Educational Choice for Children Act (ECCA), also known as the Federal Scholarship Tax …
- The federal tax credit, explainedHow the Federal Scholarship Tax Credit (FSTC), also known as the ECCA §25F credit, works for donors: $1,700 pe…
- Scholarship eligibilityWhich K–12 students qualify for ECCA scholarships, the income limits, what schools and educational expenses ar…
- Scholarship Granting OrganizationsWhat an SGO is, how organizations get designated by their state, the 90/10 rule, what compliance looks like, a…
- How states opt inHow a state opts in to the federal ECCA scholarship program: the governor's annual Treasury submission, legisl…
- ECCA for special-needs familiesHow families of K–12 students with disabilities can use ECCA scholarships to fund therapies, specialized instr…
Make your voice heard in Arizona
Contact Governor Katie Hobbs and let them know that Arizona families want access to ECCA scholarships when the program begins January 2027.
Contact Governor Hobbs →