TAX
CREDIT SCHOLARSHIPS
Summary: Sixteen states have school choice programs
that provide tax credit scholarships to help students attend K-12 schools,
according to the Friedman Foundation for Educational Choice, an Indianapolis
nonprofit.
(August 2015) Arkansas' first private
school choice measure, a voucher program, was enacted earlier this year. The development has generated interest in
school choice programs offered in other states.
One example are tax credit scholarships. The
Friedman Foundation reports the following states offer tax credit
scholarships. Following are program summaries::1
(Alabama) Tax Credit Scholarship
(2013): "The
program, a tax-credit scholarship, allows taxpayers who donate to nonprofit
scholarship granting organizations to receive tax credits for their
contributions."
(Arizona) Original
Individual Income Tax Credit Scholarship Program (1997): "This tax-credit scholarship program allows
taxpayers to receive tax credits for their donations to nonprofit organizations
that provide school scholarships to K–12 students." Low-Income Corporate Income Tax Credit Scholarship Program (2006): "This
tax-credit scholarship program allows corporate taxpayers to receive tax
credits for their donations to nonprofit organizations that provide school
scholarships to K–12 students from low-income families." Lexie's Law for Disabled and Displaced
Students Tax Credit Scholarship Program (2009): "The program (is) a
tax-credit scholarship for students with special needs...""Switcher" Individual Income Tax
Credit Scholarship Program (2012): "The law allows donors to receive
tax credits for their donations to school tuition organizations, nonprofits
that give scholarships to students in need."
(Florida) Tax Credit
Scholarship Program (2001): "Of America’s
school choice programs, the Florida Tax Credit Scholarship Program is one of
the largest in terms of student participation."
(Georgia) Qualified
Education Expense Tax Credit (2008): The program "was enacted and launched
... to help prior public school students access schools that best fit their
needs."
(Iowa) School Tuition
Organization Tax Credit (2006): The program
"helps Iowa students from low- and lower middle-income households to
afford the schooling options that best fit their needs."
(Indiana) School
Scholarship Tax Credit (2009): The program helps
"low- and middle-income families access the right school for their
children's needs."
(Kansas) Tax Credit for
Low Income Students Scholarship Program (2014)
(Louisiana) Tuition
Donation Rebate Program (2012): The program
"was designed to encourage donors to contribute to scholarship
organizations that help students from low-income households
access the private learning options best suited to their needs."
(Montana) Tax Credits for Contributions
to Scholarship Organizations (2015)
(New Hampshire) Education
Tax Credit Program (2012): The program
"gives tax credits to businesses that donate to scholarship-granting
nonprofits."
(Nevada) Educational
Choice Scholarship Program (2015): The program
"allows corporations to claim a 100 percent tax credit when they
contribute to approved Scholarship Granting
Organizations (SGOs)."
(Oklahoma) Equal
Opportunity Education Scholarships (2011): The program "gives individuals and
businesses a 50 percent tax credit for contributions ... to nonprofit
organizations that provide school scholarships to students who meet the income
and/or zoning requirements."
(Pennsylvania) Educational
Improvement Tax Credit Program (2001): The
program offers corporations tax credits for donating
to organizations that provide low- and middle-income families private school
and prekindergarten scholarships, as well as (those) that support innovative
public school programs." Opportunity
Scholarship Tax Credit Program (2012): The program "offers
corporations tax credits for their donations to Scholarship Organizations (SOs)
that provide private school scholarships."
(Rhode Island) Tax Credits
for Contributions to Scholarship Organizations (2007): The program "offers a 75 percent tax credit to
businesses that donate to Scholarship Granting Organizations (SGOs)."
(South Carolina)
Educational Credit for Exceptional Needs Children (2013): The program "provides tax credits of up to 100
percent of donations made to Scholarship Funding Organizations (SFOs)."
(Virginia) Education
Improvement Scholarships Tax Credits Program
(2012): The program "offers a 65 percent tax credit to individuals and
businesses that donate to qualified Scholarship Foundations (SFs)."
1 Summaries provided by the Friedman
Foundation, www.edchoice.org