Presented by: Casey Hale, Heather Lachenauer, and Christian Mattozzo
Offering 1.0 hour of CLE credit
Legislation enacted by Congress in July 2025 created “scholarship granting organizations” (SGOs)—a new type of IRC § 501(c)(3) organization whose donors may qualify for a dollar‑for‑dollar “Education Freedom Tax Credit” (EFTC). Effective January 1, 2027 (subject to state opt‑in), SGOs can fund scholarships covering a broad range of K–12 educational expenses for students. Join this webinar to learn how to form and operate an SGO, which expenses are eligible to be covered by scholarships, key SGO compliance requirements, how the EFTC state opt‑in process works, and what outstanding questions might be answered in forthcoming IRS guidance.
- What rules will a scholarship granting organization have to follow to become recognized by both the IRS and in its state when the EFTC goes into effect on January 1, 2027;
- What constitutes “qualified education expenses” that can be covered by a scholarship from a scholarship granting organization;
- What students qualify to receive scholarships from scholarship granting organizations;
- How the IRS has signaled in early guidance how it will interpret the provisions of the EFTC;
- A discussion of what states have, have not, and are still determining whether to opt into the Education Freedom Tax Credit; and
- How interested individuals or organizations can properly form, qualify, and operate a scholarship granting organization so that donations qualify for applicable tax credits for use to support school choice and student educational opportunities in the state where it operates.