Tue, 13 Oct 2026 10:06:44 -0700WeeblyTue, 06 Oct 2026 17:42:15 GMThttps://www.cpsffederaleducationtaxcreditdonation.org/blog/irs-proposed-regulations-issued-for-eftc-programOn October 1, 2026, Treasury and the IRS issued proposed regulations to implement the education freedom tax credit (EFTC).  The proposed regulations clarified several items from the original law.  

Beginning in 2027 the $1,700 maximum nonrefundable tax credit calculated at 100% of qualified donations will be allowed on a joint tax return so a married couple may claim up to $3,400.  Unused credits will carry forward for up to five years.  

The proposed regulations clarify that you can donate PA EITC and EFTC donations by the same taxpayer.  The simple way is just to write two checks.  Most charities will require you to make two separate donations so writing one check for both donations is beyond the scope of this update.  Here are the proposed regulations clarifying the EFTC program can begin January 1, 2027, for donors who donate in opt in states with lists of qualified charitable organizations.  

Companion temporary regulations established registration, reporting, and certifications procedures for participating states and scholarship granting organizations.  Here are the companion proposed regulations.  As a primarily Pennsylvania charity the proposed regulations seek to clarify exactly what Pennsylvania needs to do to opt into the EFTC program by January 1, 2027.  Please let your voice be heard with our Governor Josh Shapiro.  Governor Shapiro was waiting for these regulations to make a final decision about opting into this program for Pennsylvania.  Hopefully he will opt in soon so the scholarship granting organization list will not be delayed.  

Under these companion regulations the final scholarship granting organization (SGO) list has to be provided no later than February 15, 2027 by each state opting in for 2027.  The regulations allow for multiple state SGOs like our charity and small SGO's which are defined as $500,000 or less.  The regulations discuss a federal website where SGO's will get a unique donor number for each donor and the donor will use the donation on IRS Form 8525 to claim the 100% tax credit up to $1,700 per taxpayer.  IRS Form 8525 won't be released until late 2027.  

Uncertainty about grants to K-12 public schools remain and future regulations will address these grants for tutoring, afterschool programs etc.  ]]>Tue, 04 Aug 2026 17:42:17 GMThttps://www.cpsffederaleducationtaxcreditdonation.org/blog/education-freedom-tax-credit-eftc-updateEach state opts into the EFTC program using IRS Form 15714 Advanced Election to Participate under Section 25F for 2027.  By early election the states allow charities that are qualified organizations (SGO's) to apply to be on the states list of qualified organization (SGO) list.  Governors of the state sign the form 15714.  30 of 50 states have opted in to date.  

Our charity CPSF serves 4 states and a summary of the opt in status is listed below.  

Pennsylvania 
Governor Josh Shapiro has not yet made a decision on opting into the EFTC.  He has deferred his choice while reviewing federal guidance and how the program interacts with the PA EITC/OSTC tax credit program.  IRS guidance is expected to arrive after processing public comments in September or October 2026.   CPSF is currently an eligible organization under the PA EITC and OSTC program.  

Ohio 
Ohio has opted into the federal EFTC program.  Ohio donors in 2027 can donate to a qualified SGO up to $1,700 per individual and receive up to a $1,700 100% tax credit against federal IRS income tax.  Ohio currently operates a state Ohio tax credit program.  CPSF is currently an eligible organization under the Ohio 2025 tax credit program.  

West Virginia 
West Virginia has opted into the federal EFTC program.  West Virginia donors in 2027 can donate to a qualified SGO up to $1,700 per individual and receive up to a $1,700 100% tax credit against federal IRS income tax.  

Maryland 
Maryland has not yet made a decision on whether to opt into the EFTC program. Governor Wes Moore has stated he is not ready to make a choice and is waiting for additional guidance from the US Treasury expected to be published by the IRS in September or October 2026.  

IRS Guidance on EFTC (Code Section 25F)
Revenue Procedure 2026-6 Gives guidance to state governors on completing IRS Form 15714 Advanced Election to Participate under Section 25F for 2027 and voluntarily opting into the EFTC program.  The revenue procedure requests an SGO list for each state by January 1 of each year but allowing the list for January 1, 2027, to be submitted as soon as possible. Further guidance on how a state submits the SGO list to the IRS is promised.  The simple version of this guidance is each state can submit an IRS Form 15714 by December 31, 2026, and beginning January 1, 2027, each state can submit an SGO list.  

Revenue Procedure 2025-70 provided the process for public comment on EFTC before December 26, 2025.  These public comments have been incorporated into temporary regulations that are expected to be issued at the end of September 2026.  

A preview of the highlights of these regulations and Section 25F guidance was provided in remarks by Deputy Assistance Secretary for Tax Policy Kevin Salinger on Tuesday June 9, 2026 in a speech and posted on the Treasury website.  Regulation preview]]>