As February 15, 2027, approaches, states participating in the Education Freedom Tax Credit (EFTC) are preparing to submit their lists of eligible scholarship granting organizations (SGOs) to the Internal Revenue Service (IRS).
For SGOs seeking to accept EFTC funds, inclusion on a state’s list is an important step. But as SGOs work to secure inclusion on state lists, they must navigate different application processes, identify the appropriate reviewing agency, locate application materials, and track submission deadlines across states.
The State SGO Review and Application Resource is designed to help SGOs navigate that process.
The resource serves as a practical starting point for organizations seeking inclusion on state lists. It currently covers the 30 states listed on the IRS website that have made an advance election to participate in the EFTC for 2027. New York and New Mexico have also announced plans to participate but do not yet appear on the IRS list.
For each state included in the resource, SGOs can find the body responsible for reviewing applications, links to state applications, key contacts, and original sources supporting the information. The resource also outlines state application deadlines.
As additional states join the program, and states release application materials, requirements and processes may continue to evolve. This resource will reflect the latest available information as states’ participation and application processes develop.
The resource also provides insight into how state application requirements differ. Under section 1.25F-5T(e)(2) of the temporary regulations, states may not impose requirements on SGOs that are more restrictive than those outlined in 26 U.S.C. § 25F(c)(5).
States have also taken different approaches to their application processes. In Alaska, SGOs seeking inclusion on the state’s list have a straightforward path. Organizations need only provide evidence of their 501(c)(3) status and a letter attesting that they meet, and will continue to meet, all applicable federal requirements.
Other states request information in addition to what is required by the federal government. South Dakota requests information about an SGO’s board of directors, while Idaho asks about an SGO’s involvement with schools and districts in Idaho, as well as its marketing plans. These differences highlight the importance of understanding each state’s application process before beginning an application.
As more states move forward with their SGO application processes, administering agencies have an opportunity to make inclusion on state lists as straightforward as possible. Clear, workable processes help SGOs navigate state requirements and participate in the EFTC, supporting the broader goal of expanding educational opportunities for families.
The State SGO Review and Application Resource provides SGOs with a practical starting point for understanding state requirements and preparing the next step toward participating in the EFTC.
Visit the State SGO Review and Application Resource.
