The Infrastructure Behind Education Freedom

Powering the Education Freedom Tax Credit.

PSC gives Scholarship Granting Organizations the technology, operations, and compliance infrastructure to run Section 25F programs.

Build Your SGO Program Explore the EFTC

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PSC is an independent private administrator. PSC is not a government agency and does not itself award scholarships or receive Section 25F contributions unless a separately identified participating SGO is involved.

The EFTC at a Glance

Program launch: January 1, 2027
Potential federal tax credit: 0
Eligible contributors: Individual taxpayers
Recipient: A qualifying, state-listed SGO
State participation: State opt-in required

How it flows

1A state elects to participate
2The state identifies qualifying SGOs
3An individual contributes to a listed SGO
4The SGO funds eligible scholarships
5The taxpayer claims the applicable federal credit

Understand the Program

Start in the Right Place

What Brings You Here Today?

Choose your role and PSC will point you only to the information, tools, and programs that apply to you.

The Education Freedom Tax Credit creates the opportunity. Scholarship Granting Organizations administer the scholarships. PSC provides the infrastructure that helps those organizations operate.

Understanding Section 25F

What Is the Education Freedom Tax Credit?

The Education Freedom Tax Credit is a new federal income-tax credit created under Internal Revenue Code Section 25F. Beginning January 1, 2027, an eligible individual taxpayer may receive a federal credit of up to $1,700 for qualified cash contributions to a Scholarship Granting Organization on a participating state's official list.

A dollar-for-dollar federal credit

The Section 25F benefit is a credit, not a deduction. It is generally nonrefundable and may be eligible to carry forward for up to 5 succeeding tax years, subject to applicable rules.

Read the Section 25F explainer

Administered through nonprofit SGOs

A qualifying Scholarship Granting Organization receives contributions, verifies applicants, awards scholarships, and maintains the required records and separate funds.

See what an SGO must do

Scholarships for eligible K–12 students

An eligible student must be eligible to enroll in a public elementary or secondary school in a household at or below 300% of the applicable area median gross income, and funds must go to qualified education expenses.

Review student eligibility

The Operating System for SGOs

PSC Makes Complex Scholarship Programs Operational.

Ten coordinated service lines covering administration, technology, fundraising, compliance operations, and scholarship fulfillment.

SGO Formation and Launch Support

Readiness assessment
Operating model
State-list preparation

Compliance Operations

Section 25F workflow controls
Separate-fund tracking
Audit-ready reporting

Fundraising and Donor Acquisition

Public education campaigns
Contribution funnels
Campaign analytics

Contribution Administration

Secure processing
Receipts and acknowledgments
Tax-document support

Scholarship Administration

Family screening
Income verification
Award and renewal workflows

Financial Administration

Fund segregation
Expenditure tracking
SGO dashboards

Provider and Tutor Operations

Credentialing
Session tracking
Provider payments

Technology and Data

White-label portals
CRM and analytics
Secure document storage

Communications and Support

Donor and family support
Program notifications
Help-center content

Impact Reporting

Scholarship metrics
Board and donor reports
State reporting support

Explore PSC's Administration Services

Clear Separation of Responsibility

Clear Roles. Stronger Programs.

Participating SGO

Maintains nonprofit status
Receives and controls qualified contributions
Maintains required financial accounts
Establishes scholarship policies
Determines final applicant eligibility
Authorizes scholarship awards
Retains governance and fiduciary authority
Remains responsible for legal compliance

PSC SGO Administrators

Provides technology infrastructure
Operates contribution and application workflows
Supports fundraising and donor acquisition
Conducts administrative document processing
Supports eligibility-verification workflows
Coordinates providers and service fulfillment
Maintains operational data and reporting systems
Supports program scaling and daily administration

The SGO governs the program. PSC powers its operation.

Education Support Without Requiring a School Transfer

Helping Students Succeed Wherever They Learn.

EFTC scholarships are not limited to private-school tuition. Qualified education expenses may include tutoring, academic enrichment, instructional materials, and technology for students who remain enrolled in public school.

Students Can Remain in Public School

Qualifying support may be delivered alongside a student's existing public-school enrollment.

Families Gain Supplemental Support

Approved tutoring, materials, and technology can address specific academic needs.

Communities Gain Resources

Privately funded services extend what a community is able to offer students.

Tools and Directories

Use the Tools Built for Your Role

Preliminary Educational Estimate

Estimate a Potential Federal Credit

Model a qualifying cash contribution against the applicable annual maximum and your estimated federal tax liability.

Estimate My Credit

State Participation

Where the Program Stands, State by State

30 opted in · 1 announced · 2 governor vetoed · 4 declined · 14 no decision yet. Updated 2026-07-27; the program begins January 1, 2027.

Open the State Directory

For Nonprofits and Existing SGOs

SGO Readiness Assessment

Answer a short set of questions about your organization, program, and operations to receive a preliminary readiness summary.

Start Your Assessment

Answers by Audience

Frequently Asked Questions

What is the Education Freedom Tax Credit?

A federal income-tax credit created under Internal Revenue Code Section 25F for qualifying cash contributions to approved nonprofit Scholarship Granting Organizations.

How much is the credit worth?

Up to $1,700 per eligible individual taxpayer, subject to federal tax liability, statutory limits, and final Treasury and IRS guidance.

Does my state participate?

A state or the District of Columbia must elect to participate and submit a list of qualifying SGOs for the applicable year.

Can public-school students receive scholarships?

Yes. Depending on program design, qualified education expenses may include tutoring, materials, and technology for students who remain in public school.

Visit the full FAQ center

Build the Next Generation of Scholarship Infrastructure

Choose Your Next Step.

For SGOs and Nonprofits

Build, administer, or scale a Section 25F scholarship program.

Start Your SGO Assessment

For Taxpayers

Understand your potential credit and locate a qualifying contribution pathway.