Scholarship Granting Organizations in California
California has not filed an advance election for the federal scholarship tax credit and no opt-in bill has been introduced. Until the state elects to participate, no SGO can be listed in California and contributions do not qualify for the federal tax credit.
Where California stands
No advance election filed and no opt-in legislation introduced.
From the Section 25F State Opt-In Tracker, reviewed July 2026. Status can change during legislative sessions.
Get California Section 25F updates
A short email the moment California's opt-in status changes, plus formation deadlines as January 1, 2027 approaches.
What this means in California
For donors
No. The federal credit requires contributing to an SGO on the certified list of a state that has opted in, and California has neither filed an election nor introduced an opt-in bill.
For families & schools
Not at this time — scholarships under the federal program require an SGO on a participating state's list, and California has not opted in.
For organizations forming an SGO
Listing is not possible in California today. Organizations committed to the model sometimes prepare formation documents in advance or explore serving students through SGOs in neighboring participating states, subject to those states' rules.
The federal rules are the same in every state
Section 25F’s structural requirements apply identically in California and every other participating state.
Donor credit
$1,700 / yr
$3,400 married filing jointly — dollar-for-dollar federal credit
Student eligibility
≤ 300% AMI
Household income at or below 300% of area median gross income
Spending ratio
90 / 10
At least 90% of annual revenues to qualified scholarships
Distribution
10+ students
Awarded to ten or more students not all at one school
Finding an SGO in California
No SGO is federally listed anywhere yet — the program takes effect January 1, 2027, and the procedure for a state to submit its list of qualifying SGOs is still pending IRS guidance. Because California has not opted in, no SGO can be listed there. Our directory will list organizations by state as those listings are published.
California SGO questions, answered
Has California opted into the Education Freedom Tax Credit (Section 25F)?
California has not acted on Education Freedom Tax Credit (Section 25F) opt-in. No advance election filed and no opt-in legislation introduced.
Is the Education Freedom Tax Credit the same as the Federal Scholarship Tax Credit (FSTC)?
Yes. The Education Freedom Tax Credit (EFTC), the Federal Scholarship Tax Credit (FSTC), the Educational Choice for Children Act (ECCA), and Section 25F are four names for the same federal program — a dollar-for-dollar tax credit of up to $1,700 per year for donations to scholarship granting organizations, effective January 1, 2027.
Can California donors claim the $1,700 federal scholarship tax credit?
No. The federal credit requires contributing to an SGO on the certified list of a state that has opted in, and California has neither filed an election nor introduced an opt-in bill.
How do I find a Scholarship Granting Organization in California?
None operate yet — California has not opted in, so no SGO can be listed there. The SGO Guide directory at sgoguide.com/find will list organizations by state as the program rolls out.
How do I start an SGO in California?
The federal structural work — 501(c)(3) status, SGO primary mission, governing documents, and compliance design — can be prepared now, but California must elect to participate before any SGO can be listed there and donors can claim the credit.
Around California
Of the 3 states bordering California, 1 has opted in — Nevada — while Arizona and Oregon have not.
That distinction matters more here than it looks. A California taxpayer can still give to an SGO listed in a participating state and claim the full $1,700 credit — nothing in Section 25F requires a donor to live in a participating state. What California's status decides is whether any SGO can be listed in California to fund California students, and until it elects, none can. Why donors and students are governed by different rules.
Disclaimer: This page summarizes publicly tracked legislative status and general program rules for educational purposes. It is not legal or tax advice. Section 25F regulations are still evolving — consult qualified counsel before making decisions about SGO formation or donations.
Talk it through before you decide.
Tell us about your organization and we’ll set up a consultation on your formation path, your state, and the timeline. It costs nothing and there is nothing to sign — and if it’s useful, we’ll walk through the platform on the same call.
What happens next
We read your submission and respond within one business day
A working session, typically 45–60 minutes — your situation, not a sales pitch
Which of the three paths fits, what your state requires, and what the timeline is
You leave with a clear recommendation — including when the answer is to join an SGO rather than form one, or to wait