Illinois Faces January 1, 2027, Deadline to Opt Into Federal Education Freedom Tax Credit Program
Illinois lawmakers have until Jan 1st, 2027, to include Illinois in the Federal Education Freedom Tax Credit (EFTC).
According to the U.S. Department of the Treasury, the EFTC program does not divert funding from public schools. If Illinois opts in, it could unlock $1 billion in additional funds for Illinois public education.
Married couples who file jointly can qualify for a federal tax credit for up to $3,400 for contributions made to EFTC-approved scholarship granting organizations. Illinois taxpayers may donate to an eligible scholarship-granting organization in any participating state.
95% of school-age children in the United States meet the EFTC household income qualification to receive scholarships from approved scholarship organizations, according to the US Department of the Treasury.
If Illinois opts into the EFTC, Illinois students may use EFTC scholarships to attend school across state lines even if the other state does not opt in to the EFTC. Donors may also fund public schools in their community by contributing to local public-school scholarship-granting organizations.
“The more Democratic Governors learn about it, I fully expect that most will come around and participate… because from our perspective, it’s free money,” According to Colorado Gov. Jared Polis (D).
Illinois has until Jan. 1, 2027, to opt into the EFTC program, and until Feb. 15, 2027, to provide the US Department of the Treasury with a list of approved scholarship-granting organizations.
Should you have any questions, please contact the qualified attorneys at Rock Fusco & Connelly, LLC.