A Qualified Expense Under the Education Freedom Tax Credit
Can the Education Freedom Tax Credit Pay for Tutoring?
Yes. Tutoring is a qualified education expense under Section 70411 of the One Big Beautiful Bill Act (P.L. 119-21), the statute that created the Education Freedom Tax Credit.
SHORT ANSWER
Tutoring is explicitly listed as a qualified education expense. EducationSuperHighway is an approved Scholarship Granting Organization that uses these funds to deliver one-on-one literacy tutoring to first-grade students reading below grade level.
EXPLAINER
What Counts as a
Qualified Education Expense?
The statute and joint U.S. Department of Education / U.S. Treasury fact sheet list ten categories of qualified education expenses funded through Education Freedom Tax Credit scholarships.
- Tutoring Services ✔
- Tuition and fees
- Curriculum and curricular materials
- Books and instructional materials.
- Supplementary items and services required by a school.
- Special education and special-needs services.
- Educational therapies for students with disabilities.
- Certain test fees, including for standardized tests and dual-enrollment programs.
- Transportation to school.
- Computer technology or equipment used for education.
Tutoring Services
Tuition and fees
Curriculum and curricular materials
Books and instructional materials
Special education and special-needs services
Educational therapies for students with disabilities
Standardized and dual-enrollment test fees
Computer technology and equipment
Transportation to school
Supplementary items required by a school
Source: Section 70411, P.L. 119-21, with reference to Internal Revenue Code Section 530(b). Joint Fact Sheet, U.S. Department of Education and U.S. Department of the Treasury.
Where the Law Says So
The Education Freedom Tax Credit was created by Section 70411 of the One Big Beautiful Bill Act (Public Law 119-21), signed into law in July 2025. The statute defines qualified education expenses by reference to Section 530(b) of the Internal Revenue Code — the same definition Congress uses for Coverdell Education Savings Accounts. Tutoring is named explicitly within that definition.
Section 70411
P.L. 119-21
IRC § 530(b)(3)
Internal Revenue Code
Joint Federal Fact Sheet
ED + Treasury
National LANDSCAPE
Why Fund Tutoring? The First-Grade Window
First grade is the decisive window for closing the literacy gap — and high-dosage tutoring is the most evidence-backed intervention.
If a student is reading on grade level at the end of 1st grade…
85%
of those students remain on grade level through 2nd grade.
If a student is below grade level at end of 1st grade? Only…
12%
of those students catch up by the end of 2nd grade.
8x
HOW IT WORKS
How to Direct Your Donation to
Tutoring
Donors can follow these five steps to apply the federal credit to literacy tutoring scholarships.
STEP 01
Sign Up Today
Register your interest now. We’ll contact you as soon as the EFTC takes effect on January 1, 2027, with everything you need to donate.
STEP 02
Donate Up to $1,700
Make a one-time gift or start a monthly donation. Every dollar you redirect from your federal taxes, up to $1,700 per year, comes back as a dollar-for-dollar federal tax credit.
STEP 03
Teach A Kid To Read
EducationSuperHighway uses your gift to fund tutoring scholarships for low-and middle-income first-grade students who are reading below grade level.
STEP 04
Claim Your Credit
File your federal taxes and claim up to $1,700 as a dollar-for-dollar credit, offsetting the taxes you would have owed. Net cost to you: zero.
SOLVING AMERICA'S LITERACY CRISIS
What Our Scholarships Fund
If a child isn’t reading on grade level at the end of first grade, they rarely catch up. The literacy gap follows students for life — affecting their education, income, and opportunity. But with the right support at the right time, every child can become a confident, fluent reader.
Starting January 1, 2027, when you donate to EducationSuperHighway’s literacy tutoring scholarships, you’ll receive a dollar-for-dollar federal tax credit up to $1,700. Your no-cost gift funds 1:1 literacy tutoring for first graders who need it most.
National LANDSCAPE
Where Can I Make a Donation?
Last updated April 2026 ·
Frequently Asked Questions
Answers to the most common questions about funding tutoring through the Education Freedom Tax Credit.
Yes. The statute establishing the Education Freedom Tax Credit lists tutoring among qualified education expenses, defined with reference to Section 530(b) of the Internal Revenue Code.
Yes. Donors choose which approved Scholarship Granting Organization receives the contribution. An SGO whose scholarships fund tutoring will direct the funds accordingly.
An approved Scholarship Granting Organization is a 501(c)(3) non-profit that appears on the state’s certified list submitted annually to the U.S. Treasury.
EducationSuperHighway scholarships fund a full year of daily one-on-one literacy tutoring, 15 minutes per session, using methods grounded in the Science of Reading. Tutors focus on closing decoding gaps to help first-graders become confident and fluent readers before second grade.
Yes. The tax treatment of the donation is identical regardless of the qualified education expense the scholarship ultimately covers. A cash donation up to $1,700 to an approved SGO produces a dollar-for-dollar federal tax credit.
You can still donate to an approved SGO operating in any participating state and claim the federal credit. Your state of residence does not need to approve SGOs for you to claim the federal credit. EducationSuperHighway is pursuing approval in multiple states so donors nationwide can contribute.
HELP A CHILD READ
Fund Literacy Tutoring — at No Cost to You
EducationSuperHighway is a non-profit Scholarship Granting Organization. An Education Freedom Tax Credit contribution turns your federal taxes into a full year of one-on-one literacy tutoring for a first-grader reading below grade level.
© 2026 EducationSuperHighway · A 501(c)(3) non-profit Scholarship Granting Organization. This page is for educational purposes only and does not constitute tax, legal, or financial advice. Always consult a qualified tax professional. Credit regulations are subject to IRS finalization. Official EFTC Fact Sheet