Education Freedom Tax Credit
A new way to support educational opportunity
Christian Education Support Fund is being developed to help families access Christian education, through the federal Education Freedom Tax Credit (EFTC), beginning January 1, 2027.
The federal tax credit
- Up to $1,700
- Annual credit per individual
- Up to $3,400
- Combined annual credit for married couples filing jointly*
*Each spouse must make a qualifying contribution. These are credit limits, not a general household donation limit.
How does it work?
- 1
Give
An individual makes a qualifying cash gift to an eligible scholarship granting organization (SGO).
- 2
Scholarships
The SGO awards scholarships to help families access Christian education.
- 3
Claim the credit
The donor claims the federal credit on the tax return for the contribution year.
About
Christian Education Support Fund intends to support access to participating Christian schools. Our Christian identity guides our leadership and mission. Students and parents are not intended to be required to affirm our Statement of Faith to receive a scholarship.
We plan to be an eligible scholarship granting organization by the beginning of 2027, subject to the required approval and listing.
Q&A
How does the credit reduce my taxes?
A qualifying $1,000 gift can reduce federal income tax by $1,000 if sufficient tax liability remains. This credit is nonrefundable: it cannot reduce tax below zero. Unused credit may carry forward for up to five years.
Is Colorado participating?
Colorado is a participating state for 2027 and has made its advance election with the IRS. Individual SGOs still must meet program requirements and be included on the applicable state list. Colorado’s participation does not automatically qualify every nonprofit.
When can I give?
Wait until January 1, 2027, and confirm the recipient’s eligibility for that year. Christian Education Support Fund plans to be an eligible SGO by the beginning of 2027, subject to the required approval and listing. More information will be coming on how to make a contribution. Keep the required donor acknowledgment and consult your tax professional.
Who may receive a scholarship?
The student must be eligible to enroll in a public elementary or secondary school. Household income for the calendar year before application must not exceed 300% of area median gross income. Applicable limits depend on location and household size. Eligibility does not guarantee an award; funding and the SGO’s policies also matter.
What can scholarships help pay for?
Qualified expenses can include tuition, fees, academic tutoring, books, supplies, equipment, and qualifying special-needs services connected with K–12 enrollment or attendance. Federal law includes public, private, and religious schools. Each SGO may have a specific mission and program focus.
Must I donate to apply for a scholarship?
Donating does not purchase a scholarship or guarantee an award. Contributions cannot be earmarked for a particular student, including your own child. Scholarship applications and charitable gifts are separate processes.
Can I give more than the credit maximum?
Yes, but additional giving does not increase the annual federal credit beyond its limit. The credit cap applies across eligible SGOs, not separately to each organization. You cannot also claim a charitable deduction for the portion receiving this credit. A state credit for the same qualifying contribution reduces the federal credit. Ask your tax professional about larger gifts.
What is new in the October guidance?
Treasury and IRS clarified the joint-filer credit and proposed simpler income-verification methods for some families. They also established procedures for state certification, donor acknowledgments, and SGO reporting. The proposed rules allow reliance for 2027 contributions under stated conditions; they are not final regulations.