Federal Tax Credit Scholarship Program (ECCA)

Federal Tax Credit Scholarship Program (ECCA)

Funder: Georgia Student Scholarship Organization (transitioning to Federal Student Scholarship Organization)

Program Status: Authorized by Congress; launching January 1, 2027

Geographic Scope: Available to taxpayers in all 50 states; scholarships awarded to students residing in participating states

Overview:
A landmark federal tax credit legislation that allows individuals to receive a dollar-for-dollar federal income tax credit for contributions made to Scholarship Granting Organizations (SGOs/SSOs). This program closely resembles Georgia's Qualified Education Expense (QEE) Tax Credit but operates at the national level.

How It Works

• Taxpayers receive a 100% non-refundable federal income tax credit for contributions to qualified SGOs/SSOs
• No national aggregate cap on contributions
• Taxpayers may participate in both Georgia SSO's QEE program and the federal credit simultaneously
• Corporations are not eligible to participate

Student & Family Eligibility

• Students must come from households earning up to 300% of Area Median Income (AMI) as defined by HUD
• Use HUD's AMI tool to verify eligibility in your county or metro area

Eligible Expenses

As defined by Coverdell Education Savings Accounts:
• Private school tuition and fees
• Books, supplies, and academic materials
• Tutoring
• Special needs services
• Transportation, extended day programs, and certain technology (subject to federal guidance)

SGO/SSO Requirements

Scholarship Granting Organizations must:
• Be a registered 501(c)(3) nonprofit
• Provide scholarships to at least 10 students at 10 different schools
• Use at least 90% of received funds for scholarships
• Contributions may NOT be designated to a specific student

Georgia's Participation

• Georgia must formally opt in to the ECCA program
• Governor Kemp's office has officially opted in
• Georgia is a participating state
• SGOs/SSOs will only be able to award federal scholarships to students residing in the same state
• Georgia SSO already meets or exceeds all SGO/SSO criteria

Implementation Timeline

• Program launch: January 1, 2027
• U.S. Treasury Department will issue final rules and guidance throughout 2026
• Georgia SSO will provide donor education and updates in 2026

Contact: Subscribe for alerts at georgiasso.com for updates on federal tax credit scholarships