Federal Tax Credit

Coming January 2027

A dollar-for-dollar federal tax credit for scholarship donations

Educational Choice for Children Act (ECCA)

One of the provisions in the so-called "One Big Beautiful Bill Act" is a federal education tax credit that individuals can receive for donations to not-for-profit organizations that provide scholarships to help low and middle-income families pay for educational expenses. It is commonly known as the Educational Choice for Children Act (ECCA).

The ECCA will provide for more scholarships for non-public school children and can also help public school families with out-of-pocket costs such as tutoring costs, test preparation courses, exam fees, internet services, and special-needs services.

The ECCA Program goes into effect in January 2027. Donors will receive a dollar-for-dollar federal tax credit for donations made to approved Scholarship Granting Organizations (SGO).

Bridge Educational Foundation is hopeful Governor Shapiro will opt Pennsylvania into the federal Educational Choice for Children Act (ECCA), which was modeled after Pennsylvania's EITC Program. Pennsylvania's EITC infrastructure will allow for Pennsylvania to quickly establish the federal program and offer Pennsylvania kids scholarships.

Pennsylvanians will be able to claim the 100% deductible $1,700 tax credit even if Governor Shapiro declines to opt into the ECCA — however, claimants will have to send their donations into States which opted into the ECCA Program.