The Education Freedom Tax Credit
A new way to fund the hours that matter.
Starting January 1, 2027, a new federal tax credit funds K–12 scholarships, and for the first time, students in traditional public and public charter schools can participate. That means new resources for the tutoring, extended-day, and summer learning your students need. We help schools and out-of-school-time programs get ready, get funded, and serve more students.
Jan 1, 2027
Donations open
$1,700
Federal tax credit per taxpayer, dollar for dollar
$3,400
For married couples filing jointly
K–12
Public and public charter school students can participate
Three steps to more learning.
Donors give
Anyone who pays federal income tax can redirect up to $1,700 ($3,400 for married couples) to a Scholarship Granting Organization (SGO) and get it back as a dollar-for-dollar federal tax credit. Donors can direct their gift to a specific school or program.
SGOs award
SGOs pool gifts and award scholarships to eligible K–12 students, including public and charter school students.
Programs deliver
Approved programs, at schools and in the community, provide tutoring, extended-day, summer, and other qualifying learning. Scholarships cover the cost of each seat.
Your part: Get approved, invite your community to give, and help eligible families through the scholarship application. Scholarships cover the cost, so families pay nothing and you can serve more students.
More learning for your students, at no cost to your budget.
Whether you’re a school or a community-based organization, scholarships give you a new way to expand learning for the students you serve. We help you make the most of every scholarship dollar available to your students.
- Run your own programs, or partner.Offer tutoring, extended-day, and summer learning yourself, or partner with a trusted provider.
- Know who qualifies and what it costs.Identify eligible students and plan your program budget and seat costs.
- Choose the right SGO.Find the SGO whose requirements fit your goals and get approved.
- Invite your community to give.Board members, alumni, local businesses, staff, and families can direct gifts to your programs, at no cost to them.
- Reach every family.Make sure families know scholarships exist and how to access them.
Here’s how it could work.
Schools and community organizations can both put scholarships to work. Scholarship amounts reflect the up to 10% that SGOs keep for administration.
School
A school launches literacy tutoring
An elementary school wants to offer a literacy tutoring program during the school day. They become an approved provider with an SGO. The school invites its community to give: board members, staff, community organizations, and families direct their gifts to the school. Families access the scholarships, and 60 students enroll for the year at no cost to families or the school.
50
donors give a total of $85,000
60
students participate
$76,500
in scholarships ($1,275 per student)
How 900 Hours supports: We help the school identify an eligible program, select the right SGO and complete its application. Then we plan a campaign together to invite the community to give and help eligible families apply.
Community organization
A community center opens its waitlist
An afterschool center has 55 students waiting for a seat in its hands-on STEM program. It becomes an approved provider with an SGO and opens a second group. Waitlisted families apply for scholarships and use them to enroll in the STEM program. Existing funding supports the current seats, and scholarships fund the new ones.
76
donors give a total of $129,200
55
new seats
$115,500
in scholarships ($2,100 per student)
How 900 Hours supports: We help the center prepare its program and get approved. Then we coach new staff as the program grows and track student outcomes to support yearly SGO renewal.
What could your community raise for your students?
Anyone in your community who pays federal income tax can give, from parents and staff to neighbors and local business owners. They can direct their gift to your school or program and get it back as a federal tax credit, up to $1,700 each. Try your own numbers to see the potential.
Many first-year campaigns land between 10% and 25% overall. Staff and board often give at higher rates.
Up to $1,700 per person.
Your cost for one student for a term or a year.
Your community could raise
$127,500
75
donors (13% of everyone)
95
student seats funded
Estimate only. Assumes gifts are directed to your school or program. Seats are calculated on 90% of gifts, since SGOs keep up to 10% for administration. Gifts can’t be designated for a specific student, and each SGO makes its own award decisions.
Is your state participating?
Scholarships are available only in states that opt in. Select your state to see where it stands.
Source: IRS list of participating states, updated October 22, 2026.
Select a state
30 states are in for 2027.
Tap any state on the map to see its status and your next step. States can still opt in, and we update this map as they do.
Not sure if you qualify?
Answer four quick questions to see where you stand and what to do next.
900 Hours Project · Playbook
The Education Freedom Tax Credit Playbook
For out-of-school-time providers
2026 edition
Everything you need to get started.
We built the Playbook for practitioners. It takes you from understanding the credit to serving more students with scholarships. Download the Playbook to access ready-to-use tools for each step:
SGO Comparison & Conversation Guide
What to ask SGOs and how to choose the right one.
Readiness Check & Action Plan
Review eight areas, then turn your program gaps into a 90-day plan.
Community Campaign Guide
How to invite board members, staff, families, and community members to give.
Launch Checklist
Every step to take before and after January 1.
Request the Playbook, available November 10
We help you get approved, get funded, and show results.
We work with trusted SGOs focused on quality learning and connect you with the right one for your school or program.
01
Get Ready
Prepare to participate
Learn more
Get Ready
We review your program, identify eligible students, plan your costs per seat, and match you with the right SGO. You leave with a ready-to-submit application and an action plan.
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02
Activate Funding
Engage your community
Learn more
Activate Funding
We build your giving campaign with you, from goals and timeline to ready-to-use messages for families, donors, and community partners, and we coach you through the giving season.
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Deliver Results
Strengthen quality and show impact
Learn more
Deliver Results
We help design the program, provide curriculum and coaching, and measure student outcomes, so you have the evidence for SGO renewal and growth.
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Every partner joins our community of practice: a network of schools and programs sharing tools and templates, updated guidance on changing rules and state decisions, and webinars and peer learning as the landscape evolves.
The hours are already there. Let’s fund them.
Donations begin January 1, 2027. Start now, and you’ll be ready when scholarships reach your students.