Education Freedom Tax Credit for Scholarships
Unlocking the Potential of America’s Academic Future
The Education Freedom Tax Credit gives taxpayers a no-cost vehicle to bolster education in America and provides families access to stronger school options and academic services.
Sign up NOW to stay informed on all the latest opportunities and developments of this exciting new tax credit for scholarships.
EDUCATION FREEDOM TAX CREDIT FOR SCHOLARSHIPS
EDUCATION FREEDOM TAX CREDIT FOR SCHOLARSHIPS
Unlocking the Potential of America’s Academic Future
The Education Freedom Tax Credit gives taxpayers a no-cost vehicle to bolster education in America and provides families access to stronger school options and academic services.
Sign up NOW to stay informed on all the latest opportunities and developments of this exciting new tax credit for scholarships.
A Federal Initiative to Expand Educational Freedom
What Is the Education Freedom Tax Credit for Scholarships?
Beginning in January 2027, this new Education Freedom Tax Credit opportunity could empower millions of families by generating funding for scholarships that allow America’s K-12 students the ability to choose the educational environment, services and support that meet their unique learning needs.
Educational opportunities no longer need to be dictated by zip code but can instead be curated by parents who know their children best.
Scholarships are funded entirely through private donations, not taxpayer dollars.
Donors receive a dollar-for-dollar federal tax credit (up to $1,700), making this an innovative, powerful, cost-effective way to expand opportunities and unleash educational freedom — all without compromising public school funding.
Scholarship dollars can be used for:
“
We’ve seen firsthand how educational choice lifts lives. This Education Freedom Tax Credit for scholarships delivers the opportunity to scale that freedom nationwide.”
Norton Rainey, CEO of ACE Scholarships
Timeline and Rule-Making Information
Timeline and Rule-Making Information
EMPOWERING DONORS AND PARENTS THROUGH A TAX CREDIT
How It Works
For Families
Scholarships may be provided to students:
From households earning up to 300% of the area median income
Who are enrolled or eligible to enroll in public school
For Individual Donors
This is a 100% nonrefundable federal tax credit!
Up to $1,700 per year
Excess credits can be carried forward for up to 5 years
Beginning in 2027, the new Education Freedom Tax Credit for scholarships has the capacity to bring educational freedom to families across America in a truly unprecedented manner by offering a dollar-for-dollar tax credit of up to $1,700 for individuals who donate to qualifying nonprofit Scholarship Granting Organizations (like ACE Scholarships!). This is exciting news because every child deserves access to an excellent education, regardless of their zip code.
As organizations evaluate the possibility of forming Scholarship Granting Organizations (SGOs) in response to the passage of the federal tax credit for scholarships, they will soon discover the overwhelming administrative and technological challenges of the effort. ACE is uniquely positioned to meet this need through its proven platform and 25 years of scholarship granting experience – combining experienced people, streamlined processes and executional proficiency.
ACE offers a smarter solution – a partnership that leverages its established infrastructure and innovative technology in a mutually beneficial collaboration. This means organizations can avoid the operational complexities and startup costs of establishing and operating an SGO while still taking advantage of the federal tax credit opportunity to expand their impact.
How It Benefits Every Part of the ACE Community
Services
For Schools
ACE Scholarships partners with schools to expand access through federal tax-credit scholarships, helping increase enrollment, foster innovation, and preserve school autonomy. Eligible scholarship funds can be used for tuition, fees, supplies, technology, public-school courses, extended day programs, tutoring, and special-needs services.
Families
The Education Freedom Tax Credit scholarship gives families real educational choice by covering tuition, fees, tutoring, therapies, technology, and other eligible expenses—so parents can choose the school and support that fits their child, not their income or zip code. Eligible students are those from households up to 300% of area median income who are enrolled in, or eligible to enroll in, public school.
Opt-In
The Education Freedom Tax Credit program can expand school choice for families at no cost to states—if states opt-in. Governors must opt-in each year by January 1 or risk losing scholarship dollars to other states, meaning local students miss out on tuition, tutoring, special education, technology, and other eligible educational supports.
Ways to Support
There are multiple ways you can be active in supporting the successful implementation of the Education Freedom Tax Credit. From helping spread the word and encouraging leaders to opt-in, to funding scholarships at no-cost and expanding our network of partner schools and organizations, we invite you to get involved.
Contact Us
For press or media related concerns, please email [email protected]
You can click the link below to sign up for our Education Freedom Tax Credit mailing list to stay up to date on ongoing developments and opportunities.
*NOTE: The information presented on this website reflects ACE Scholarships FTC SGO’s understanding as of Section 25F of the Internal Revenue Code of 1986, as amended, as of the current date and is subject to change without notice. Subsequent legislation, judicial decisions, as well as regulations or any other guidance, whether formal or informal, from the U.S. Department of the Treasury or any other governmental authority, may, be determined by ACE Scholarships FTC SGO, in its discretion, to require changes to the program and any related requirements. We will update relevant content as soon as administratively practicable as new information becomes available. However, no assurance is given that the information is current, complete or accurate as of any particular date, and ACE Scholarships FTC SGO assumes no obligation to update any content except as required by applicable law. The information provided on this website is for general informational purposes only and does not constitute tax, legal, accounting, or financial or other professional advice. ACE Scholarships FTC SGO does not provide tax, legal, accounting, financial or other professional services, and no attorney-client, tax advisor-client, or other professional relationship is created by your access to or use of this site. You should not act upon any information contained herein without first obtaining advice from your own independent qualified tax, legal, accounting, financial or other professional advisor based on your individual circumstances. Any U.S. Federal Income Tax information on this website is not intended or written to be used, and cannot be used, for purposes of avoiding penalties under the Internal Revenue Code or promoting, marketing or recommending to another party any transaction of matter addressed herein. References to third-party resources or websites are provided for your convenience only and do not constitute any endorsement. ACE Scholarships FTC SGO has no responsibility for the content of such third-party resources.
