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What Are the Purchase Restrictions for TEFA?

This article explains the purchase restrictions that apply to certain eligible expenses under the Texas Education Freedom Accounts (TEFA) Program.

Overview

Some eligible expense categories have purchase restrictions under the TEFA Program.

The items listed below are subject to a purchase restriction of 10% of the student's annual award amount. This means the total amount spent on these items cannot exceed 10% of the student's annual award amount.


Purchase Restrictions

Category

Purchase Restriction

Headphones

10% of annual award amount

Cameras

10% of annual award amount

3D Printers

1 purchase per year and 10% of annual award amount

Laptops

10% of annual award amount

Tablets

10% of annual award amount

Desktops

10% of annual award amount

Monitors

10% of annual award amount

Webcams

10% of annual award amount

Printers

10% of annual award amount

Computer Accessories

10% of annual award amount

Calculators

10% of annual award amount

Internet Hot Spots

10% of annual award amount

Software Programs

10% of annual award amount

Musical Instruments

Price cap of $1000

⚠️Important: The 10% restriction applies collectively across all technology purchases that are subject to this limitation. The combined total spent on these items cannot exceed 10% of the student's annual award amount.

Is the 10% Technology Spending Limit Calculated Before or After Sales Tax?

The 10% technology spending limit is calculated before sales tax.

The restriction applies to the combined purchase price of eligible technology items subject to the 10% limitation. Applicable sales tax is calculated separately at checkout.

Example:

If a student receives a $10,000 annual TEFA award:

  • The combined technology spending limit is $1,000 before sales tax.

  • Applicable sales tax is calculated separately at checkout.

  • Sales tax does not reduce the $1,000 technology spending limit.

⚠️Important: The 10% spending limit applies collectively to all technology items subject to this restriction, not separately to each item.

Additional Information

  • Purchase restrictions apply to Marketplace purchases.

  • Purchases that exceed the applicable purchase restriction may not be approved.

For more information about eligible expenses, please refer to the TEFA Eligible Expenses guidance.

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