The Education Freedom Tax Credit Program Update

What Education Foundations Need to Know

The Education Freedom Tax Credit Program is moving from legislation to implementation. With the U.S. Department of the Treasury and Internal Revenue Service having issued proposed regulations for the new federal scholarship tax credit, education foundations now have greater clarity about how the program is expected to operate beginning January 1, 2027.

Join NAEF for an exclusive members-only webinar providing a practical, foundation-focused look at the Education Freedom Tax Credit Program and the new Treasury and IRS guidance. We will examine what the regulations mean for education foundations, Scholarship Granting Organizations (SGOs), donors, and the students and families who may benefit from the program.

The proposed regulations establish important requirements for organizations seeking to operate as SGOs, including separate accounting for qualified contributions, scholarship distribution requirements, student eligibility and income verification, state participation, reporting and recordkeeping, and independent audit requirements. The regulations also provide a safe harbor that may be particularly important for organizations considering how an existing scholarship program or education foundation could operate within the federal framework.

Drawing on NAEF's ongoing work with federal policymakers, national partners, and organizations in Washington, D.C., this session will help you understand not only what the new rules say, but what your foundation should be thinking about now as states and organizations prepare for 2027.

Topics will include:

• What the Education Freedom Tax Credit Program does—and what has changed with the release of the Treasury and IRS proposed regulations

• The federal $1,700 individual tax credit and how qualified contributions to SGOs will work

• How Scholarship Granting Organizations will be defined and the requirements they must meet

• The 90% scholarship-spending requirement and the new 85% scholarship-activity safe harbor

• Requirements for separate accounts, recordkeeping, reporting, and independent audits

• Student eligibility, household income requirements, and scholarship priorities

• What expenses may be covered by Education Freedom Tax Credit scholarships

• How state participation and state SGO lists will affect implementation

• Opportunities and challenges for education foundations considering SGO participation

• How the program could affect fundraising, donor engagement, scholarship programs, and relationships with school districts

• What education foundations should be doing now to prepare for 2027—even if they do not plan to become an SGO

• Key implementation questions that remain subject to the final regulations and state-level decisions

This webinar is free and exclusively for NAEF members. 

Attendance is limited to 100 participants, so early registration is encouraged.

NAEF Members - Complimentary