Tue, 04 Aug 2026 16:30:35 -0700WeeblyTue, 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]]>