Scholarship Tax Credit Program

Indiana Scholarship Tax Credit Program

Providing educational options and opportunities for thousands of Indiana families.

The Indiana Scholarship Tax Credit Program was enacted in 2009, but has been expanded as part of the 2011 Choice Bill. In conjunction with the Choice Scholarship Program (see reverse) these programs offer the opportunity for Indiana families to choose the school that best suits their children’s needs.

Program Summary

The Indiana Scholarship Tax Credit Program provides eligible lower income families with scholarships given by certified Scholarship Granting Organizations (or SGOs) to attend the school of their choice. Private donors receive a 50% tax credit for their donations to these SGOs to fund scholarships. The total program cap for FY 2011 is 5 million dollars.

Student Eligibility and Scholarships

(Note that these are program eligibility requirements and may be set lower by the individual SGOs)

  • Families who fall under 200% of the Federal Free and Reduced Lunch Qualifying amount  are eligible for a Tax Credit Scholarship
  • Students must have been enrolled in a public school the year prior to receive a scholarship or be entering Kindergarten.
  • Scholarship amounts are determined by the individual SGOs
  • Scholarships are portable and follow the student from one eligible school to another

Non-Public School Eligibility and Participation

  • Participating non-public schools must be accredited by the state or another regional accreditation agency recognized by the state board and administer the ISTEP or another nationally recognized norm-reference test
  • Participating non-public schools may not accept students from an SGO whose staff is an employee or board member with the school
  • Annual teacher performance evaluation plans must also be implemented