About the Educational Choice for Children Act (ECCA)

The Educational Choice for Children Act (ECCA) is not just about private school tuition. It provides a federal income tax credit that will help parents with children in K-12 public and private schools and fund things like transportation, books, educational technology software, education supplies, home schooling curriculum materials and other qualified education expenses as well as tutoring and special needs services AND tuition. This is a new section in the Internal Revenue Code (§25F) and is permanent; there is no expiration date.

The ECCA bill provides:

• A 100 percent non-refundable federal income tax credit of up to $1,700 for donations to a scholarship granting organization of the donor’s choice.
• Students whose family income does not exceed 300 percent of the median poverty level will be eligible for a scholarship.
• There is no cap of available tax credits; there is no “first-come, first-serve” allocation.
• Scholarships amounts and other award details will be at the discretion of each SGO and may vary among different SGOs. SGOs will establish criteria for participation, including the application process, scholarship amounts, etc.
• The U.S. Treasury Department will write the tax rules and regulations regarding applications for the IRS tax credits.
• The program will begin in 2027, allowing time for creation of SGOs as well as education of parents, schools and donors.

Some shortcomings in the ECCA:

• It requires states to affirmatively “opt-in” – allowing ECCA SGOs to be created.
• There is no provision requiring the protection of the religious liberty and autonomy of the private school from interference by the state or SGO.
• The program does not allow donations from corporations and foundations, the usual contributors of large donations.
• It’s not a true national program in that a state must opt in giving states the ability to determine whether their schools can participate.

NCEA will continue to work with its partners in CAPE and other pro-school-choice organizations to help with the implementation of the law and educating schools, parents and potential donors about the benefits and rules and regulations.

As more information becomes available, NCEA will share it on the Public Policy Activities page.