FAQs

The ECCA is a federal tax-credit bill that encourages contributions to nonprofit organizations that fund education scholarships. These scholarships aim to provide qualified elementary and secondary school students with financial assistance for tuition and other education-related expenses.

The ECCA scholarship funds come from taxpayers wanting to receive a federal tax-credit by choosing to redirect a portion of their federal income tax so students can attend the school of their choice — state tax-credits ARE NOT government funds.

Vouchers are scholarships that are given to students from state-appropriated funds — vouchers ARE government funds.

By failing to “opt in” states prevent their students from receiving scholarship funds through ECCA. States cannot “block” their residents from giving to a Scholarship Granting Organization (SGO) and receiving a federal tax-credit. For students to receive scholarships, states must opt in by providing a list of approved SGOs by January 1st of each year.

Currently, we are not aware of states that are opting into ECCA. No later than January 1st of a calendar year the Governor of the State (or assigned designee) must provide a list of approved Scholarship Granting Organizations to the Secretary.

No later than January 1st of a calendar year the Governor of the State (or assigned designee) must provide a list of approved SGOs to the Secretary.

No. These are private contributions to private Scholarship Granting Organizations, handing out scholarships to families who go to private schools.

No. State and federal tax-credits operate independently. Contributions to get a state tax-credit reduce your state tax liability, while contributions under ECCA are eligible for a federal tax-credit.

The final ECCA bill did not include a contribution cap. Instead, it established only a minimum amount required to qualify for the tax-credit. There is no limit on the number of individuals who can contribute $1,700 and receive the corresponding tax-credit.

The allowable $1,700 amount is per individual taxpayer; businesses cannot participate. (The language in the bill only says $1,700 per individual. There is a thought that it will be limited “per tax return” rather than per taxpayer. This would put the limit at $1,700 for a married couple filing jointly.)

Yes, this is a dollar-for-dollar tax-credit. Individuals can receive up to $1,700 in federal tax-credits.

The maximum tax-credit allowed under ECCA is $1,700. A contributor can give more than $1,700 but can only receive a tax-credit of $1,700.

No. ECCA is a non-refundable tax-credit so a contributor would not receive a refund for any amount that is above what is owed. There is a carry forward which allows any amount over your liability to be carried forward to the next year (up to 5 years).

Example: If you send CTF $1,700 and you only wind up owing the federal government $1,200, you will owe them zero and you'll have $500 credit to carry forward to the next year.

Yes. Since the tax-credit is offered at the federal level you can live in one state and contribute to a school in another state. Example: A contributor in Arizona wants to contribute to a school in Georgia where their grandkid attends. The contributor will give their contribution through an approved Scholarship Granting Organization in Georgia, receive the tax-credit and funds will go to scholarship a student in that school.

Yes. As long as the state you are contributing to has opted into the ECCA program, you may direct your contribution to an eligible school in that state.

No, a contributor cannot designate a particular student; they can only designate a school within a state that has opted in or can designate the CTF general fund.

Funds will go into the CTF General Fund and be awarded to the neediest students first.

A public, home school, or private elementary or secondary school (including a religious elementary or secondary school).

Yes, home schooling programs can benefit whether treated as a home school or a private school for purposes of applicable State law. Home schools must comply with applicable State law.

Only students in grades K–12 will be able to apply for a scholarship under ECCA.

An eligible student is a student who is a member of a household with an income which is not greater than 300 percent of the area median gross income and is eligible to enroll in a public elementary or secondary school.

The HUD median income for student qualification applies to where the student resides.

The HUD Median area income is based on the county the student resides in. Determine your HUD Median area income: HUD Income Limits

Yes, ECCA scholarships can be stacked on top of state tax-credit scholarships in applicable states.

Yes, an individual can contribute to a Scholarship Granting Organization, and they can also apply for their child to receive a scholarship. However, their contribution cannot go directly to their child.

Currently, the scholarship amount is determined by the Scholarship Granting Organization in partnership with the school. Final guidelines may be adjusted during the federal rulemaking process.

No, students receiving an ECCA scholarship will not be required to take standardized testing.

• Tuition
• Curricula and curricular materials
• Books or other instructional materials
• Online educational materials
• Tuition for tutoring or educational classes outside of the home
• Fees for a nationally standardized norm-referenced achievement test
• Fees associated with advanced placement exams, or any examinations related to admission to an institution of higher education
• Fees for dual enrollment in an institution of higher education
• Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies

This question is not answered in the current bill and most likely will be addressed in the rules and regulations that will be issued. ACSI/CTF will speak into this matter directly.

Contact CTF at ctf@acsi.org and establish an agreement between CTF and your school. Establishing an agreement now will ensure that when ECCA goes live we will be ready to accept contributions to your school. It is also important at this time to make your contributors aware of this federal tax-credit program so they can contribute once tax-credits become available. CTF will be able to provide you with flyers and information to give potential contributors, assist you with any questions, and be a resource as you navigate this new federal school choice option.

Historically, SGOs have operated with a cap around 10% for administrative costs. Exact limits will be finalized through the federal rulemaking process.

A Scholarship Granting Organization will be allowed to take up to 10% of a contribution to be used for administrative costs. CTF is currently evaluating this information to determine what administrative fee will be taken.

ECCA begins January 1, 2027. You cannot start receiving contributions until the program has started. It will be important to start educating your contributor base and supporters right away so they are prepared and ready to give. This also allows the school to plan accordingly.

If contributions are received January – September of 2027 we will apply these funds towards scholarships for the 2027–28 school year.

In the original text of the bill there was strong language that was specific for SGOs, parents, and schools but that was removed. However, while there is no strong language we want you to understand several key factors:

• This is NOT federal financial assistance. Schools/students receive disbursements from non-profit organizations who receive donations from taxpayers.
• These are private contributions to private Scholarship Granting Organizations, handing out scholarships to families who go to private schools. The only federal “transaction” is the tax-credit the contributor receives on their federal taxes.
• There are strong Supreme Court cases that protect religious schools. We've talked to Alliance Defending Freedom and the Beckett Fund for Religious Freedom, and both have assured us that if a school is being sued, they're likely to prevail.

There are several things to consider regarding timing and method:

• First and foremost, be strategic in each state. Continue to watch for emails from CTF or ACSI PPLA on how you can advocate in your state. We will also be planning a state-by-state advocacy role with our partners. We want your energy but will ensure it’s channeled for maximum effectiveness.
• When notified, we will need everyone to put maximum pressure on the Governor (or Governor’s designee). The primary reason states talk about not having a school choice program is perceived expense; ECCA removes the state expense objection because it does not cost states a penny.
• Other factors that influence a governor’s decision include unions/organizations and political timing (e.g., aspirations toward national runs).
• As rules and regulations are developed, the Treasury Department could regulate how the state opt-in choice is made.

In conclusion, there are still many things to come and a lot of work yet to be done in 2026!

Individuals wanting to receive a tax-credit at both the state and federal level will need to make two separate contributions. Since two separate contributions will be made this will not affect SPE contributions.

The remaining 10% of an SPE contribution can count as a charitable contribution on the contributor’s federal return. Contributors who want to receive a tax-credit at both the state and federal level will need to make two separate contributions.

No. Unlike PA EITC where only business can participate unless going through an SPE, ECCA is only for individual contributors. Individuals will be able to go to the CTF website (or a link that is provided for you to post on your school website) and make a direct contribution.

When contributing through the CTF website (or link) a contributor will be able to select their designated school.

ECCA will allow contributors to designate the school of their choice. A Scholarship Granting Organization must work with 2 or more schools in a state, but funds are not required to be split between two schools.