FSTC Frequently Asked Questions

For Families

What is the scholarship tax credit, and how does it differ from other scholarship programs?

Federal Scholarship Tax Credit (FSTC),
Educational Choice for Children Act (ECCA)
Education Freedom Tax Credit (EFTC)

For simplicity, this FAQ will refer to it as FSTC or simply “scholarship tax credit.” It offers individual taxpayers a $1,700 dollar for dollar tax credit, which motivates private investment in scholarships to provide support for students, whether they are enrolled in public schools, private schools, religious schools, or are being home-schooled. Unlike traditional voucher programs, the FSTC is not dependent on state-allocated educational budgets.

How do I find a Scholarship Granting Organization to apply for help?

The simplest way to start is to ask your child’s teachers or school administrators for a list of Scholarship Granting Organizations (SGOs) in your area. If they cannot help, check the website of your state’s Department of Education for an official and updated directory of their approved SGOs. Independent school-choice databases, such as School Choice USA or EdChoice, maintain national and state-by-state directories of active SGOs.

How do I find out if my child is eligible to receive a scholarship?

Most programs are strictly means-tested to assist lower- to middle-income households. Eligibility is typically tied to a percentage of the federal poverty guidelines. For example, household income not exceeding 300% of the baseline, with higher thresholds often allowed for students with disabilities. You can see whether your child is likely to be considered eligible by using a scholarship eligibility checking tool such as the one at https://eftccredit.com/tools/scholarship-eligibility-calculator.

What educational expenses are allowable under the FSTC?

Are FSTC scholarships available in all 50 states?

How is the FSTC funded?

Can I donate to the FSTC, receive a tax credit, and direct my gift to provide a scholarship for my own child?

My state has not yet opted into the FSTC. What can I do to ensure that students in my state can utilize the FSTC to enrich their education?

For Public School Administrators

Will the Federal Scholarship Tax Credit Education Freedom Tax Credit (FSTC / EFTC) reduce funding for public schools?

No. Unlike traditional state-funded vouchers, the FSTC / EFTC It is funded solely by donations from individual taxpayers, not the federal or state government. In fact, unlike other scholarship tax credit programs, public school students can benefit from the FSTC and receive scholarships to pay for a variety of educational expenses.

How can I leverage the FSTC to improve educational outcomes for the students at my school?

The FSTC / EFTC creates the opportunity for students in public schools to benefit from scholarships that can help enhance their educational journey. overcome the chronic problem of funding inequality, which is driven by a heavy reliance on local property taxes. By partnering with SGOs, students at your school can apply for scholarships and receive assistance with educational enrichment such as:

Tuition, uniforms, transportation, and other fees.

Books and supplies.
Academic tutoring.
Extended day programs.
Computer technology, equipment, or internet access.
Educational therapies, for example, occupational, speech, behavioral, or physical.

How can the FSTCEFTC help students at my school with educational enrichment outside of school hours?

For many families, the largest barriers to educational success exist outside of the school day. Because scholarships can be used for high-dosage tutoring, specialized educational therapies, SAT and ACT preparation, and vocational readiness tools, the FSTC can help bridge the enrichment divide. These services can also help students in public schools overcome the impact of the “summer slide,” which is one of the most significant contributors to the lifelong wealth gap in the United States.

My state has opted into the FSTC. How can I help the students at my school receive FSTC funds?

My state has not yet opted into the FSTCEFTC. What can I do to help ensure that the students at my school can get the assistance they need with FSTC-funded scholarships?

For Private and Religious School Administrators

What types of schools are eligible to receive scholarship funds under the FSTC?

Any public, private (including religious) school program that provides elementary or secondary education (kindergarten through grade 12) can receive scholarships funded by the FSTC as long as their state has opted into the program.

Will accepting scholarship dollars under the FSTC limit my school’s autonomy?

Are students required to take standardized tests?

My state has not yet opted into the FSTC program. What can I do to help ensure that the students at my school can get the assistance they need with FSTC-funded scholarships?

For Scholarship Granting Organizations

What does an SGO need to do to participate in the FSTC?

In order to participate in the FSTC and accept scholarship donations, an SGO must:

Be a 501(c)(3) and not a private foundation.
Prevent the commingling of contributions with other funds received.
Be included on the list submitted by a state governor to the treasury.
Provide scholarships to 10 or more students who do not attend the same school.
Spend 90% or more of their income on scholarships.
Ensure funds are used exclusively for qualified expenses.
Prioritize and award students in accordance with the law.

What educational expenses are allowable under the FSTC?

Federal regulations aren't finalized yet. Is now the right time to commit to a platform?

Treasury and IRS are targeting final implementing regulations by end of September 2026 — which means the window between rules and the January 1, 2027 donor contribution start date is roughly 90 days. SGOs that haven't finalized infrastructure by then will spend Q1 2027 onboarding instead of fundraising. ClassWallet's platform is configurable by design — we've launched programs where the rules were still being written and adapted mid-cycle without service disruption. You don't need final regulations to start building. You need a platform that can absorb the changes when they arrive.