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