Building with the Education Freedom Tax Credit Scholarship (EFTC)
IQE partners with hundreds of schools across the state to provide thousands of Hoosier students with scholarships.
The EFTC offers local schools and education service providers a financial bridge to support your students and build the programs you’ve always envisioned.
With this new funding source, schools—including traditional public, public charter, private, and homeschools—as well as service providers, can build programs such as:
- Before and after-school programs
- Work-Based Learning
- Transportation solutions
- Therapies and support services
School & Provider Eligibility
The EFTC program welcomes a wide range of educational programs and professionals to give families maximum flexibility. Eligible providers generally fall into three main categories:
- K-12 Schools: traditional public, public charter, and private schools
- Alternative Learning Models: Microschools and Homeschool
- Individual & Commercial Providers: Individual Service Providers (e.g. tutors and therapists) and Businesses (e.g. learning centers, STEM labs, and career and employment exploration)
Note on Program Status: As this is a new federal initiative, we are currently awaiting final guidance from the U.S. Treasury, which is expected in Fall 2026.
Getting Answers
Frequently Asked Questions
Find answers to common questions about how the Education Freedom Tax Credit Scholarship works with other school choice programs, what expenses may be covered, and how the federal and state tax credit scholarship programs differ.
Yes. As long as individual program requirements are met, the EFTC scholarship may be used in addition to the Choice Scholarship (voucher), Education Scholarship Account (ESA), Career Scholarship Account (CSA), and the Indiana Tax Credit Scholarship (State SGO).
Scholarships may cover the following list of education expenses:
- School tuition and fees; room/board; and uniforms
- Books, instructional materials, and technology
- Tutoring
- Transportation
- Supplementary items and services, including extended day programs
- Services of students with disabilities
No. While they may sound similar, they operate differently and are completely separate programs.
Because they are separate programs, they have different student eligibility guidelines, different allowable scholarship expenses, and donors must make separate contributions to claim each specific credit.
The Education Freedom Tax Credit (EFTC) is a federal initiative that provides a dollar-for-dollar (100%) federal tax credit for eligible donations. Donations are used to provide scholarships to any K-12 student to use on broad range of educational expenses.
The Indiana State Tax Credit Scholarship (State SGO) provides a 50% state tax credit to donors who contribute to an approved Scholarship Granting Organization (SGO) like IQE. Donations are used to provide scholarships to K-12 students to use on tuition and fees at a participating private school.