How it works

From your taxes to a homeschool family.

How the Education Freedom Tax Credit works, and how the Homeschool Fund awards scholarships to families.

How the credit works · How awards are made · FAQ

For donors

How the credit works

What the credit is

The Education Freedom Tax Credit is a federal tax credit created in 2025 under Section 25F of the tax code. When you give to a Scholarship Granting Organization (SGO), your federal income tax goes down by the amount of your gift, up to $1,700 a year and no more than the tax you owe. It’s a credit, not a deduction: it lowers the tax itself, not just the income you’re taxed on.

Our role as an SGO

To receive tax-credit gifts, a charity must be listed by a participating state as a Scholarship Granting Organization. The Nehemiah Foundation, a 501(c)(3) public charity, has applied to be listed as an SGO for its Homeschool Fund in several states and is preparing to apply in as many more as it can. Tax-credit giving opens once we’re approved in at least one state. See our status by state

Who can give

Any individual who pays federal income tax, in any state. Gifts must be cash and come from you personally; gifts from businesses or donor-advised funds don’t qualify. A married couple can give up to $3,400 when each spouse gives.

Where scholarships go

Scholarships go to students who live in states that have opted in and where the Homeschool Fund is approved to serve. We’re registering in as many participating states as we can. Where we serve

The dates

Gifts made on or after January 1, 2027 count. We send your acknowledgment letter, with your donor number, by January 31 of the next year, and you claim the credit on IRS Form 8525 with your federal return.

What we do with the money

Tax-credit gifts go into a separate scholarship account for each state, and at least 90% of that money goes to scholarships for Christian homeschool families. A person on our Scholarship Committee reviews every application. How awards are made

For families

How awards are made

How we decide who receives a scholarship. We publish these rules before applications open and apply them the same way to every family.

Who is eligible?

A student in kindergarten through 12th grade who could enroll in a public school
Household income at or below 300% of the area median income
Lives in a state where we’re approved to serve
Is a homeschool student, as the student’s state law recognizes homeschooling
Faith: a parent or guardian affirms the Nicene Creed and is a member of a local church

How is income verified?

Every year, including for returning students, we verify household income and size with a tax return or IRS transcript, W-2s, or pay stubs, or with a recent award letter showing a household member is approved for SNAP, TANF, WIC, Section 8 housing assistance or SSI.

What if requests are more than the funds available?

When requests exceed funds, students who received a scholarship last year come first, then their brothers and sisters, then other eligible students.

Who decides?

Our board appoints a Scholarship Committee. A person on the committee reviews every application against these published rules.

How are scholarships paid?

Scholarships are paid directly to schools or verified providers, or reimbursed to families against receipts. No cash is paid to families without documentation, and we check that no expense is paid twice.

Who can’t receive a scholarship?

Directors, officers, Scholarship Committee members, substantial contributors (large donors), and members of their families.

Who chooses the curriculum and providers?

Families choose their own providers. We don’t direct families to any vendor, including companies connected to our board, and no award depends on buying from one.

Can tax-deductible gifts fund scholarships?

Tax-deductible gifts to the Homeschool Fund may also fund scholarships. They follow these same policies, and may reach families the tax-credit rules don’t, such as families in states that haven’t opted in.

How do you keep it fair?

We publish our eligibility rules before applications open and apply them the same way to every applicant.

Award amounts and the date applications open will be set by the board and announced. For families · Accountability · Statement of Faith