Enacted 2013 • Launched 2014 • Tax-Credit Scholarship
South Carolina allows individuals, partnerships, corporations, and similar entities to claim a 100
percent tax credit for contributions to approved Scholarship Funding Organizations (SFOs), nonprofits
that provide private school scholarships. Individuals, partnerships, corporations, and similar entities
can claim tax credits up to 60 percent of their tax liability; however, married couples filing separate
returns may only claim half of the tax credit allowed had they filed jointly. The total amount of tax
credits awarded statewide is limited to $8 million.
Latest Stats (2013-14)
- Students participating: N.A.
- Schools participating: N.A.
- Scholarship organizations: N.A.
- Average scholarship value: N.A.
The maximum scholarship amount an SFO may award is $10,000. Scholarships may be used for tuition,
transportation, textbook expenses, or any combination of these at qualifying private schools.
Students are eligible to receive scholarships if they have been designated by the South Carolina
Department of Education as meeting the federal definition of a “child with a disability” (34 CFR 300.8).
Additionally, a student’s parents must believe the assigned public school district does not sufficiently
meet the student’s needs.
No legal challenges have been filed against the program.
Rules & Regulations
• Income Limit: None
• Prior Year Public School Requirement: None
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: $10,000
• Testing Mandates: State achievement tests or nationally recognized norm-referenced tests
• Credit Value: 100 percent tax credit for 60 percent of tax liability
• Total Credit Cap: Yes
• Budget Cap: $8 million
S.C. State Budget Proviso 1.85
Doran Moreland | firstname.lastname@example.org