Kentucky has opted into the Education Freedom Tax Credit (EFTC) program, a new law that comes into effect January 1st, 2027. Details are scarce now, and we will keep you informed along the way! For now, here is what we know:
Who is awarding/funding the scholarships:
Who is eligible for a scholarship: .
What can scholarships pay for:
Who is awarding/funding the scholarships:
- Awards come from non-profit Scholarship Granting Organizations (SGOs) approved by the Kentucky Secretary of State. Full list of SGOs should be available later this year.
- No cost to Kentucky taxpayers — it's funded by donors, who receive a federal tax credit.
Who is eligible for a scholarship: .
- K-12 children from ANY education setting: public, private, and homeschool students!
- You ARE NOT required to enroll your child in a private school to receive the scholarship
- Family makes less than 300% of the “area median family income.” Based on Warren County data, we estimate a family of four making less than $249,000 per year may qualify.
What can scholarships pay for:
- Tuition at private schools
- Books, supplies, internet access, and more
- Special needs services above what the school provides
- Tutoring services at Bluegrass Learning!
How can families use the program (Starting 2027):
How much could be awarded to your family (per child):
How will we use a scholarship at Bluegrass Learning:
What if your family is NOT eligible for a scholarship:
Finally, we’ve done our best to provide accurate information in this post, but some details will most likely change as new information is released. We’ll post updates on our website at www.bluegrasslearning.com.
- Check the official list of approved SGOs on the Kentucky Secretary of State's website: sos.ky.gov (list coming late 2026/early 2027).
- Apply directly to one or more SGOs (online forms, income proof, student details).
- If awarded, use the scholarship funds to pay for tutoring at Bluegrass Learning (we'll help with paperwork/receipts!).
- Watch for updates — we'll share them via email, our website, at the office, and any time if you have questions!
How much could be awarded to your family (per child):
- Estimates vary. Initial awards may be small, in the $500 range per child, while the SGOs generate donations.
- Once the program is fully funded, potential estimates- based on similar programs- range from as low as $2000 to as much as $8000 or more per child.
How will we use a scholarship at Bluegrass Learning:
- SGOs will set the requirements, but initial information from some national SGOs suggest two possible options:
- Most likely: You pay for tutoring up front (out-of-pocket) and submit receipts to the SGO for reimbursement, similar to how a Health Savings Account (HSA) works
- Less likely: The SGOs may allow for direct billing, where you just bring your child for tutoring, we bill the SGO, and they pay us directly.
What if your family is NOT eligible for a scholarship:
- If you are looking for ways to reduce your tax liability each year, consider donating to one of the approved SGOs once they are announced.
- You will receive a dollar-for-dollar tax credit (not a deduction) for any donation up to the $1700 limit, and the law requires that at least 90% of your donation MUST be used to help support the education of other students, many of whom may not be able to afford tutoring or private school tuition
Finally, we’ve done our best to provide accurate information in this post, but some details will most likely change as new information is released. We’ll post updates on our website at www.bluegrasslearning.com.
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