ECCA in North Carolina
North Carolina 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
- Josh Stein
- Democrat
- Status
- Governor vetoed
- As of 2025-08-01
- Program begins
- January 1, 2027
- Federal tax credit live
What's happening with ECCA in North Carolina
North Carolina's legislature passed a bill to opt the state into the federal Educational Choice for Children Act, but Governor Josh Stein vetoed it on 2025-08-01. Vetoed legislative bill, but later said NC will "probably" opt in pending IRS regulations.
Unless the legislature overrides the veto or the governor reverses course, North Carolina will not have designated Scholarship Granting Organizations when ECCA goes live on January 1, 2027. North Carolina families would not be eligible for ECCA scholarships, even though donors anywhere — including in North Carolina — can still claim the federal tax credit by giving to SGOs in participating states.
In practical terms: the federal tax dollars that North Carolina donors choose to redirect to scholarships will fund students in other states instead of staying in North Carolina communities. Local advocates, parents, and taxpayers can urge North Carolina's leadership to revisit the decision before the program begins.
Frequently asked questions about ECCA in North Carolina
Does North Carolina participate in ECCA?
Not currently. North Carolina's legislature passed an opt-in bill, but Governor Josh Stein vetoed it on 2025-08-01. The state would need either a veto override or a reversal from the governor to participate.
Who is the governor of North Carolina and what is their position on ECCA?
Governor Josh Stein (Democrat) vetoed the legislature's opt-in bill. Vetoed legislative bill, but later said NC will "probably" opt in pending IRS regulations.
Can North Carolina 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 North Carolina is not currently participating, donations from North Carolina residents would need to go to SGOs in opted-in states — funding scholarships for students in those states rather than in North Carolina.
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.
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 North Carolina
Contact Governor Josh Stein and let them know that North Carolina families want access to ECCA scholarships when the program begins January 2027.
Contact Governor Stein →