Naming the Federal Tax Credit · One Program, Three Names

Federal Scholarship Tax Credit vs. Education Freedom Tax Credit

They’re the same program. EFTC, FSTC, and ECCA are three names for the $1,700 dollar-for-dollar federal tax credit created by Section 70411 of the One Big Beautiful Bill Act, available starting January 1, 2027.

EFTC = FSTC = ECCA. All three names refer to the same federal program. Donate to an approved Scholarship Granting Organization (SGO) like EducationSuperHighway to claim your $1,700 credit.

EXPLAINER

Three Names .
Who Uses Which?

Different groups use different names. But all three refer to the identical program.

Education Freedom Tax Credit

EFTC

The operational name used by the Trump Administration, Treasury and IRS draft guidance, and most post-2025 news coverage.

Federal Scholarship Tax Credit

FSTC

The descriptive name used by policy analysts, state implementation docs, and academic or legal literature. Distinguishes the federal credit from state-level SGO credits.

Educational Choice for Children Act

ECCA

The original legislative name, still used by the bill’s sponsors, think tanks, and legal analysis citing the statute directly.

The Program at a Glance

$1,700

Max tax credit per year

1.1.27

First day donations qualify

5 years

Carry-forward for unused credit

Key Features Side-by-Side

Feature	EFTC / FSTC / ECCA (all three)
Legal basis	Section 70411, One Big Beautiful Bill Act (P.L. 119-21)
Signed into law	July 2025
Credit amount	$1,700 per taxpayer, dollar-for-dollar
Eligible donors	Any U.S. taxpayer with federal tax liability
Eligible students	Grades K–12, household income ≤300% of area median
Qualifying recipients	State-certified Scholarship Granting Organizations
Available starting	January 1, 2027
Unused credit	Carries forward up to 5 years
Program duration	Permanent (no sunset in current statute)
Current status	Treasury/IRS regulations in development

National LANDSCAPE

Where Can I Make a Donation?

No matter what state you live in, every U.S. taxpayer can redirect up to $1,700 of their federal taxes to education scholarships. To do this, simply make a donation to an approved scholarship granting organization in one of these states starting January 1, 2027.

Opted in (29 states)

Decision in progress

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Last updated April 2026 ·

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Frequently Asked Questions

Is the Education Freedom Tax Credit the same as the Federal Scholarship Tax Credit?

Yes. The Education Freedom Tax Credit (EFTC), Federal Scholarship Tax Credit (FSTC), and Educational Choice for Children Act (ECCA) credit are three names for the same federal tax credit program created by Section 70411 of the One Big Beautiful Bill Act. All three refer to the same $1,700 dollar-for-dollar credit with identical eligibility rules and start date.

Why does this credit have three different names?

The original legislation was the Educational Choice for Children Act. When folded into the 2025 budget reconciliation bill, it became Section 70411 of the One Big Beautiful Bill Act. The Trump Administration marketed it as the Education Freedom Tax Credit. Policy analysts commonly call it the Federal Scholarship Tax Credit to distinguish it from state-level SGO credits.

Which name should I use?

Education Freedom Tax Credit (EFTC) is the most common current usage — it appears in Treasury/IRS guidance and most news coverage. When talking to a tax professional, ‘the $1,700 federal credit under Section 70411 of P.L. 119-21’ removes any ambiguity.

Do I need to live in a participating state to claim the credit?

No. The Education Freedom Tax Credit is federal, so any U.S. taxpayer can claim it regardless of where they live. What matters is whether your donation goes to an approved Scholarship Granting Organization (SGO). State opt-in determines which SGOs are eligible — not which donors.

What law created the Education Freedom Tax Credit?

Section 70411 of the One Big Beautiful Bill Act (Public Law 119-21), signed into law in July 2025. The provision incorporated the earlier Educational Choice for Children Act (ECCA) into the 2025 budget reconciliation package.

When does the credit take effect?

Donations made on or after January 1, 2027 qualify. The credit is authorized for tax years 2027 through 2029 under current statute, but the program has no sunset clause — it’s permanent unless Congress repeals it.

How is this different from state-level scholarship tax credits?

State scholarship tax credits reduce state income tax owed. The Education Freedom Tax Credit reduces federal income tax owed. You can claim both, but not on the same donation — you’d make two separate contributions, one for each credit.

What happens if my state hasn't opted in?

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.

ABOUT EDUCATIONSUPERHIGHWAY

Ready to Claim Your Credit?

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