The Education Freedom Tax Credit: An Opportunity to Make a Difference
What if you could help provide scholarships for students to attend Christian schools while receiving a dollar-for-dollar federal income tax credit?
The federal Education Freedom Tax Credit (EFTC), established through the Working Families Tax Cuts Act, creates an exciting opportunity for individuals to support educational scholarships through qualified Scholarship Granting Organizations (SGOs).
Gospel Light Christian School is partnering with Accord Kids, a Scholarship Granting Organization operated through the American Association of Christian Schools’ Children’s Scholarship Fund, to help connect donors with this opportunity.
Beginning January 1, 2027, eligible donors may contribute cash to an approved Scholarship Granting Organization and receive a federal income tax credit of up to:
$1,700 for individual taxpayers
$3,400 for married couples filing jointly
Unlike a traditional tax deduction, a tax credit reduces your federal income tax liability dollar-for-dollar.
These contributions help fund scholarships for eligible K–12 students, expanding opportunities for families seeking a quality Christian education.
We understand that tax laws and charitable giving strategies can raise questions. We want to make sure you understand how this opportunity works before making a commitment.
Karson Cox, Enrolled Agent and Business Manager at Gospel Light Christian School, is offering complimentary 30-minute consultations to explain the Education Freedom Tax Credit, discuss potential tax benefits, and answer general questions about the contribution process.
We would love to help you explore how you can make a lasting investment in Christian education!
The Education Freedom Tax Credit is a federal tax credit available under Internal Revenue Code Section 25F, beginning with qualifying contributions made in 2027.
The maximum credit is $1,700 per eligible individual ($3,400 for eligible married couples filing jointly). The credit is nonrefundable, subject to applicable federal limitations, and unused credit may be carried forward for up to five years.
Tax credit eligibility is subject to applicable federal requirements, including state participation and approval and recognition of the Scholarship Granting Organization. North Carolina has elected to participate in the program; however, SGO recognition and final program implementation requirements remain subject to applicable federal guidance and approval.
Contributions must be made to an approved Scholarship Granting Organization and designated as qualified contributions. Contributions are not made directly to Gospel Light Christian School and cannot be earmarked or directed to a specific student or family. Scholarship awards are administered independently by the SGO according to applicable eligibility requirements and award criteria.
Pledges made before January 1, 2027, are nonbinding expressions of interest and are not qualifying charitable contributions.
The information provided on this website is for general educational purposes only and should not be considered individualized tax, legal, or financial advice. Actual tax benefits depend on each donor’s individual circumstances and applicable law. Donors should consult their own tax professional regarding their eligibility and specific tax situation.
