Enacted 2003 • Launched 2004–05

Ohio students on the autism spectrum may use a voucher to receive education services from a private provider, including tuition at a private school. After participating students receive education services, they apply to the state for reimbursement of expenses.

Enacted 2005 • Launched 2005–06

Most Utah students who have a disability are eligible to receive a scholarship to attend a private school. However, participation is limited by the amount of money appropriated to the special needs scholarship program fund. In 2011, this appropriation was extended by an additional $538,200 in ongoing funds. The program’s total ongoing funding is now approximately $3.75 million.

Enacted 1995 • Launched 1996–97

Families who live within the boundaries of the Cleveland Municipal School District are eligible to use a voucher to send their children to private school. The voucher also may be used at public schools bordering the school district, but currently no public schools have chosen to participate. No more than half of new recipients may be students previously enrolled in private schools. In addition, the state gives tutorial grants to public school students for services beyond those provided by public schools. As of 2011, Cleveland vouchers increased from $800 to $1,550 per student to mirror the size of the state’s EdChoice Scholarships (see page 58). Also, the program, previously limited to students entering grades K–8, is now open to students in any grade.

Enacted 2006 • Launched 2006–07

Arizona provides a credit on corporate income taxes for donations to School Tuition Organizations (STOs), privately run non-profit organizations that distribute private school scholarships. This program is modeled after Arizona’s existing individual tax credit for donations to STOs; the two programs work in tandem. All organizations registered as STOs may participate in both programs. Corporate taxpayers contributing to STOs may claim a tax credit equal to the full amount of their contribution. In 2010–11, a total of 17 STOs participated in the program and awarded scholarships.

Enacted 1987 • Launched 1987

Iowa provides a tax credit covering educational expenses for students in any private or public school, including tuition, books, and lab or activity fees. The credit is worth a maximum of $250.

Enacted 2005 • Launched 2006–07

Ohio students attending chronically failing public schools are eligible for vouchers to attend private schools. The EdChoice Scholarship Program will quadruple the number of vouchers available during the next two years to allow 60,000 scholarships by the 2012–13 school year. Eligibility for EdChoice also expanded to include students who attend schools in the bottom 10 percent of the state according to state performance index scores.

Enacted 2001 | Began Operation 2001-02

The Educational Improvement Tax Credit Program provides a tax credit on the state’s corporate income tax for contributions to Scholarship Organizations (SOs), which give private school scholarships to eligible children, or Educational Improvement Organizations (EIOs), which support innovative programs in public schools. A company may claim a tax credit worth 75 percent of its contribution. Alternatively, if it commits to two consecutive annual contributions, it may claim a tax credit worth 90 percent of its contribution. In either case, the maximum tax credit is $300,000 in each year that a donation is made. The total of all K–12 tax credits is limited to $44,466,667 in 2011–12. Credits are awarded to companies on a first-come, first-served basis until the cap is reached. The cap for 2011–12 has already been reached.

Enacted 2001 • Launched 2001–02

Florida provides a tax credit on corporate income taxes as well as insurance premium taxes for donations to Scholarship Funding Organizations (SFOs), privately run non-profit organizations that distribute private school scholarships. SFOs provide scholarships worth up to $4,106 for low-income students. They also may provide students with funds for transportation to another public school. Businesses get a dollar-for-dollar tax credit for contributions to scholarship organizations. The overall size of the program is capped at $140 million for 2010–11 (that amount will rise by 25 percent in future years if the total credits claimed in a given year amount to 90 percent of the current cap).

In 2011, new legislation amended the original Florida Tax Credit Scholarship law in two ways: (1) Eliminated the tax liability cap (formerly set at 75 percent) on the total tax due that qualifies for a credit; (2) Allowed the carry forward of an unused amount of a tax credit to the next fiscal year, and eliminated the rescindment of all or part of an unused tax credit.

Enacted 2007 • Launched 2007–08

Any student with a disability whose parents are unhappy with their assigned Georgia public school is eligible to receive a voucher to attend a private school. The program is modeled after Florida’s McKay Scholarship Program.

Enacted as Pilot Program in 1999 • Expanded 2000–01

Any student with a disability whose parents are unhappy with their assigned public school is eligible to receive a McKay voucher to attend a private school or another public school. Started in 1999 as a pilot in Sarasota County, the program originally was capped at five percent of eligible enrollment. It was expanded statewide in 2000–01, and the cap was removed.

New legislation has expanded the program to include “504 Plan” students (section 504 of the federal Rehabilitation Act of 1973). Essentially, this extends eligibility to an estimated 50,000 students across the state of Florida. Section 504 protects qualified individuals with disabilities. Under this law, individuals with disabilities are defined as persons with a physical or mental impairment which substantially limits one or more major life activities. People who have a history of impairment, or who are regarded as having a physical or mental impairment that substantially limits one or more major life activities, are also covered. Major life activities include caring for one’s self, walking, seeing, hearing, speaking, breathing, working, performing manual tasks, and learning.

Began Operation in 1955 (Deductions) and 1997 (Credit)

Minnesota provides a tax credit and a tax deduction covering educational expenses for students in any private or public school, including homeschooling. The tax deduction lowers a family’s taxable income; the tax credit reduces the family’s total tax liability. Both cover books, tutors, academic after-school programs, and other non-tuition educational expenses. The deduction also includes tuition payments at private schools, although the credit does not. The credit and the deduction make it easier for families to choose a private school for their children.

Launched 1990–91

Eligible low-income families in Milwaukee, Wisconsin may send their children to a participating private school of their choice.

New legislation in 2011 significantly increased the number of families and schools eligible to participate in the Milwaukee Parental Choice Program. Now, children from all families earning up to 300 percent of the federal poverty guidelines (e.g., about $67,000 for a family of four) will qualify to receive school vouchers. The cap on the number of students who can participate will be removed, and as a result, it is estimated that about 84,000 Milwaukee families—or more than 65 percent of all Milwaukee families—will be eligible to participate. Once a student receives a voucher, that student will be able to keep it, regardless of his or her family’s future income. The new rules also stipulate that parents earning between 200 percent and 300 percent of the federal poverty guidelines can add their own funds on top of the voucher, which will give them a wider array of options. Voucher students are now allowed to attend any participating private school in the state.

Enacted 2004 • Launched 2004–05 • Authorized through 2015–16

To give parents in the District of Columbia the ability to select the educational setting that best serves their child’s interests and needs, the U.S. Congress passed the D.C. School Choice Incentive Act of 2003. This five-year pilot program was part of the omnibus spending bill passed in 2004 and became the first voucher program to be overseen by the U.S. Department of Education. The program is funded separately from District of Columbia public schools. In April 2011, the program was re-authorized through 2016.

Enacted 1997 • Launched 1997–98

Arizona provides a credit on individual income taxes for donations to School Tuition Organizations (STOs), privately run non-profit organizations that distribute private school scholarships. Individual taxpayers contributing to STOs may claim a dollar-for-dollar credit of up to $500, and married couples filing jointly may claim up to $1,000. Also, individuals may claim up to $200 ($400 for married couples) for contributing to a public school for extracurricular activities or character education programs. Any non-profit that wants to operate as an STO may do so; there were 53 STOs in 2010–11.

Enacted 2006 • Launched 2006

Iowa provides a credit on individual income taxes for donations to School Tuition Organizations (STOs), privately run nonprofit organizations that distribute private school scholarships. The credit is worth 65 percent of the value of the donation. The value of the tax credit is also limited by a statewide cap. A maximum of $7.5 million in tax credits is available, although 2011 budget legislation raised that cap to $8.75 million starting July 1, 2012. Each STO is able to grant tax credits to its donors up to its share of this statewide limit, with each STO’s share determined by the enrollment at the schools it serves. There are 12 STOs.

In 2009, an expansion allowed corporate donations for the first time. These donations are able to constitute up to 25 percent of the $7.5 million cap.

On July 29, 2011, Gov. Terry Branstad signed budget legislation that stipulated an increase for the cap on available tax credits. The new cap will be $8.75 million for the 2012 tax year (previously it was $7.5 million). Based on the program’s history, that should make available approximately 1,200 more scholarships.

Enacted 2006 • Launched 2007

Rhode Island began provides a credit on corporate income taxes for donations to Scholarship Organizations (SOs), privately run nonprofit organizations that distribute private school scholarships. Corporate taxpayers contributing to SOs may claim a tax credit equal to 75 percent of their contribution, or 90 percent if they donate for two consecutive years and the second year’s donation is worth at least 80 percent of the first year’s donation.

Enacted 1999 • Launched 2000

Illinois provides a tax credit covering educational expenses for students in any private or public school, including tuition, books, and lab or activity fees. The credit is worth a maximum of $500.

Launched 1873

Many small towns in Maine do not operate local high schools, and some do not operate local elementary schools. Students in these towns are eligible for vouchers to attend public schools in other towns or non-religious private schools, even outside the state. The sending towns pay tuition directly to the receiving schools. Although most towns allow parents to choose which schools will receive their students, some towns send all their students to one school. In 2009, 176 towns let parents decide where to send their children, while 33 towns contracted with one school.

Began Operation 1869

Many small towns in Vermont do not operate local high schools, and some do not operate local elementary schools. Students in these towns are eligible for vouchers to attend public schools in other towns or non-religious private schools, even outside the state. The “sending” towns pay tuition directly to the “receiving” schools. Although most towns allow parents to choose which schools will receive their students, some towns send all their students to one school.