Garden State Academic Excellence Fund
The Education Freedom Tax Credit (EFTC) is a proposed federal program that allows taxpayers to redirect a portion of their federal tax liability — up to $1,700 for individuals or $3,400 for married couples filing jointly — to approved Scholarship Granting Organizations (SGOs). This is a dollar-for-dollar tax credit, not a deduction, meaning every dollar contributed reduces your federal taxes owed by the same amount.
| Scenario | Federal Tax Owed | SGO Contribution | Final to IRS | Student Impact |
|---|---|---|---|---|
| Without SGO | $5,000 | $0 | $5,000 | $0 |
| With SGO | $5,000 | ($1,700) | $3,300 | $1,700 |
- Dollar-for-dollar federal tax credit — not a deduction
- New Jersey needs to opt in via Senate Resolution 20
- 90% of contributions go directly to student scholarships
- Funds cover tutoring, test prep, tuition, and special education services
The Garden State Academic Excellence Fund is a pending 501(c)(3) Scholarship Granting Organization dedicated to providing New Jersey students with access to high-quality educational services. Once authorized, GSAEF will collect taxpayer contributions under the EFTC program and distribute scholarship funds directly to approved education providers — ensuring that every dollar makes a measurable impact on student achievement.