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Federal Education Freedom Tax Credit set for Jan. 1, 2027 launch; states urged to opt in

A new federal tax credit designed to expand access to K-12 scholarships is preparing for its nationwide launch in January.

Sources (1)· Oct 6, 6:27 PM

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Internal Revenue Service issues regulations for Education Freedom Tax CreditOn Oct. 2, the Internal Revenue Service (IRS) issued regulations that determine how the Education Freedom Tax Credit (EFTC) will run and, in turn, how many states participate. The EFTC — also known as the Federal Scholarship Tax Credit (FSTC), or IRS Section 25F — will allow individuals to receive federal tax credits for donations […]