Giving

Learn about the EFTC

Education Freedom Tax Credit (EFTC)
A New Opportunity to Expand Access to Christian Education

At Maranatha High School, we believe every student deserves the opportunity to discover their God-given potential through a Christ-centered, university-preparatory education.

Making a Maranatha education accessible to families from a wide range of financial circumstances is an important part of that commitment.

Beginning January 1, 2027, a new federal program called the Education Freedom Tax Credit (EFTC), officially the Federal Scholarship Tax Credit, could create additional opportunities for individuals to support scholarships for eligible K–12 students.

Maranatha is actively studying this opportunity and monitoring California's participation.
What Is the Education Freedom Tax Credit?
The EFTC is a new federal income tax credit for eligible individuals who make qualifying cash contributions to approved Scholarship Granting Organizations (SGOs).

Beginning in 2027:
  • Individuals may qualify for a federal income tax credit of up to $1,700 annually.
  • Married couples filing jointly may qualify for a combined credit of up to $3,400 annually.
  • Qualifying contributions must be made to approved Scholarship Granting Organizations, not directly to individual schools.
  • Scholarship organizations use these contributions to provide financial assistance for eligible K–12 educational expenses.
Unlike a traditional charitable tax deduction, a tax credit directly reduces the amount of federal income tax owed, subject to applicable limitations.

What Could This Mean for Maranatha Students?
For more than 60 years, Maranatha High School has partnered with families to provide an education grounded in academic excellence, spiritual formation, and opportunities in athletics, arts, and service.

Tuition assistance is an essential part of making that education possible for more students.

If California participates in the EFTC and qualifying scholarship organizations become available to serve Maranatha students, this program could provide an additional source of scholarship support for eligible families.

This would complement Maranatha's ongoing commitment to tuition assistance and educational accessibility.

California's Participation: Current Status
Status as of October 19, 2026: California has not elected to participate in the EFTC for 2027, according to the IRS's published participation list.

Each state must elect to participate and identify eligible Scholarship Granting Organizations for the program to support students in that state.

Governor Gavin Newsom and California officials have the opportunity to consider participation in this federal program, though no decision has been made to this point.

Until California participates and qualified scholarship organizations are identified, EFTC contributions cannot be used to fund scholarships for Maranatha students through this program.

Stay informed: Visit the IRS's official Federal Scholarship Tax Credit page for the latest list of participating states.

Share your perspective: If you believe participation in this program would benefit our community, California, and our nation, we invite you to join us in encouraging Governor Newsom to support California’s participation in the federal program.

You can easily share your support for the EFTC with Governor Newsom at this link. 

Maranatha will continue monitoring developments and will update this page as new information becomes available.

Stay Informed

Maranatha is working to understand how this new program may benefit our students and families.

We invite parents, grandparents, alumni, and friends of Maranatha to stay informed as California's participation and scholarship opportunities develop.

Sign up for EFTC updates

Receive occasional updates about California's participation, scholarship organization approvals, and any future opportunities to support eligible Maranatha students.

Official Resources
Important Information

The EFTC is a federal tax program subject to eligibility requirements, state participation, approved scholarship organizations, and applicable IRS regulations. Maranatha High School does not provide legal or tax advice. Individuals should consult their own qualified tax advisers before making decisions about contributions or tax credits.

Last updated: October 19, 2026.

Frequently Asked Questions

List of 7 frequently asked questions.

  • Q: When does the tax credit become available?

    The federal credit begins January 1, 2027, for qualifying contributions made during the 2027 tax year.

  • Q: Can I donate directly to Maranatha and receive this credit?

    No. The federal credit applies to qualifying cash contributions made to approved Scholarship Granting Organizations, not contributions made directly to Maranatha High School.

    Traditional charitable contributions to Maranatha remain separate from the EFTC program.

  • Q: What is a Scholarship Granting Organization?

    An SGO is an eligible nonprofit charitable organization that receives contributions and awards scholarships to qualified K–12 students. SGOs must satisfy federal requirements and be included on the list submitted by a participating state to the IRS.

    Maranatha is currently studying which SGO would be the best partner, if California opts to participate in the program.

  • Q: Can I direct my contribution specifically to Maranatha students?

    Maranatha is investigating this question with prospective scholarship organizations.

    Federal rules prohibit earmarking contributions for particular students. Whether an approved SGO can accommodate donor preferences for a particular school will depend on its policies and applicable requirements.

    We will provide further guidance once these questions are resolved.

  • Q: Who could qualify for a scholarship?

    The program generally serves K–12 students from households with income not exceeding 300% of the applicable area median gross income, with relevant household-size adjustments and other eligibility requirements.

    Scholarship eligibility will be determined by the qualified SGO, not automatically by admission to Maranatha or receipt of existing tuition assistance.

  • Q: Does this replace Maranatha's existing tuition assistance program?

    No. The EFTC is a separate federal program that could complement and enhance existing tuition assistance if California participates and a qualified SGO can serve Maranatha students.

  • Q: Can I make a qualifying EFTC contribution now?

    No. Qualifying contributions for the new federal credit begin January 1, 2027. Maranatha is not currently collecting contributions under the EFTC.