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Update on Scholarship Tax Credit Program

February 25th 2012

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 these programs offer the opportunity for Indiana families to choose the school that best suits their children’s needs. The total program cap for fiscal year 2018 is $12.5 million and in year 2019 is $14 million.

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.

Student Eligibility and Scholarships

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

  • Families who fall at or under 200% of the Federal Free and Reduced Lunch Qualifying amount  are eligible for a Tax Credit Scholarship
  • Scholarship amounts are determined by the individual SGOs in cooperation with the participating school, but must be a minimum of $500.
  • 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 Indiana state assesment or another nationally recognized norm-reference test
  • Participating non-public schools may not distribute scholarships for use by an eligible student to enroll in a school that has paid staff or board members or members of the immediate household of paid staff or board members in common with the SGO.
  • Annual teacher performance evaluation plans must also be implemented