Education Freedom Tax Credit
More Opportunity for North Carolina Students
A new scholarship program will help North Carolina students in public, public charter, private, and homeschools pay for learning needs beyond tuition. Scholarships can help cover tutoring, books, supplies, and other education costs that may stand in a child's way. PEFNC and AFC Scholarship Fund are working together to help families take part.
How It WorksGet EFTC Updates
What Is the Education Freedom Tax Credit?
The Education Freedom Tax Credit (EFTC) is a new federal program that helps students get scholarships for education expenses that can make learning harder to afford. Students in public, public charter, private, and homeschools may benefit. Starting in 2027, eligible taxpayers can make a donation to an approved scholarship organization and receive a federal income tax credit of up to $1,700.
A tax credit lowers the federal income tax you owe. Donations fund scholarships for costs such as tutoring, books, school supplies, uniforms, fees, and private school tuition. What a scholarship can cover depends on the type of expense.
People Donate
Donors make a donation to an approved scholarship fund, like AFC Scholarship Fund.
Students Get Scholarships
The fund uses those donations to provide scholarships to eligible K–12 students.
Students Get What They Need
Families use scholarships for education costs, such as tutoring, books, supplies, uniforms, fees, or tuition.
What Can a Scholarship Pay For?
EFTC scholarships can help students in traditional public, public charter, private, and homeschools pay for a wide range of education costs.
These are examples of expenses covered under federal K–12 education rules. Some costs must be required or provided by a school. More details on using EFTC scholarships will be shared before applications open.
Helping North Carolina Families
You can come to PEFNC with your questions. We'll help you get started.
PEFNC has partnered with AFC Scholarship Fund to bring new K–12 scholarships to North Carolina.
PEFNC will be your local point of contact. We'll work directly with schools to help them set up their scholarship funds, reach donors, and explain the program to families. AFC Scholarship Fund will handle the scholarship funds and payments.
Our Parent Liaison Team can also visit schools, meet with families, and explain how to apply for scholarships or donate to a school's scholarship fund.
Find Out How to Get InvolvedFour Ways to Get Involved
Whether you're a parent, school leader, donor, or employer, here's what this program could mean for you.
Parents & Families
Find out how scholarships can help pay for your child's education.
Learn About Scholarships →
Schools & Networks
Work with PEFNC to raise scholarship money for students at your school.
Learn About School Partnerships →
Donors
Make a donation to a school's scholarship fund and learn about the federal tax credit.
Learn About Giving →
Help More Families Access Your School
Your school can work with PEFNC to create a scholarship fund for students who need help with education costs, including tutoring, supplies, fees, and tuition.
PEFNC will work directly with your school to get started. We'll help you connect with donors, explain the scholarships to families, and use AFC Scholarship Fund to manage the money and award scholarships.
You'll have a PEFNC contact to guide you through the process. Our Parent Liaison Team can come to your school to meet with families, answer questions, and show parents how to apply for scholarships or donate.
More Resources for Your Child's Education
Your child may be able to get a scholarship for education costs, whether they attend public, charter, private, or homeschool.
Already receiving an Opportunity Scholarship or ESA+? Your child can receive an EFTC-funded scholarship, too.
PEFNC's Parent Liaison Team can explain how the program works, visit your school, and help you prepare to apply.
PEFNC Is Here to Help
Not sure where to start? Contact PEFNC. We'll help schools set up scholarship funds, show donors how to give, and help families understand how to apply.
Your Contribution. More Educational Opportunity.
Your donation can help a student get the educational resources they need.
Starting in 2027, eligible taxpayers can donate through AFC Scholarship Fund and receive a federal income tax credit of up to $1,700.
Want to support a particular school? You can donate to that school's scholarship fund through AFC Scholarship Fund. Your donation will help provide scholarships for eligible students at that school.
PEFNC can show you how to donate when giving opens.
Get Updates for Donors
Bring Scholarship Giving to Your Workplace
Give employees an easy way to help students in their communities.
PEFNC and AFC Scholarship Fund are working on a way for employees to donate to scholarship funds through payroll giving. Employees could choose to give through their workplace instead of making a separate donation.
More information and details to come.
Get Updates for Employers
Get EFTC Updates
Sign up for news about how the Education Freedom Tax Credit could benefit you.
We'll use your information to send you EFTC updates.
Frequently Asked Questions
Which students are eligible for a scholarship?
Students attending traditional public schools, public charter schools, private schools, and homeschools in North Carolina can qualify. There are income requirements, and an estimated 93% of North Carolina students meet them. Scholarships can help pay for education expenses beyond tuition, too.
When does the Education Freedom Tax Credit begin?
Donations can begin January 1, 2027.
Can families apply for scholarships now?
Not yet. Sign up for updates, and we'll let you know when applications open.
What can a scholarship pay for?
Scholarships can cover much more than tuition. See the expense guide above for examples, including tutoring, supplies, technology, and school programs.
Can families also receive an Opportunity Scholarship or ESA+?
Yes! As the program continues to be developed, the State Education Assistance Authority will provide more details on how to use an EFTC-funded scholarship alongside a state-funded scholarship.
How can schools participate?
Schools can partner with PEFNC to set up a scholarship fund through AFC Scholarship Fund. Donors can give to that fund, and the money will be used for scholarships for eligible students at the school. PEFNC will help the school get started and work with families throughout the process.
Can donors support a particular school?
Yes! You can donate to a particular school's scholarship fund through AFC Scholarship Fund to help students at that school.
Can employees donate through work?
PEFNC and AFC Scholarship Fund are working on a payroll-giving option. We'll share more when it's ready.
Have Questions? Start with PEFNC.
We're here to help families, schools, donors, and employers understand the EFTC and get ready for 2027.
Get EFTC Updates