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.
Latest Stats (2010)
- Students Participating: 34,550
- Schools Participating: 1,114
- Average Scholarship Value: $3,747
Program Details
Program Type
Tax-Credit Scholarship
Scholarship/Voucher Value
SFOs provide scholarships worth up to $4,106 for private school tuition and fees, though they may not exceed the actual private school costs. At least 75 percent of the scholarship must be used for tuition, with the rest available for textbooks and transportation. Transportation grants are worth up to $500. The average scholarship in 2010–11 was $3,747.
Participation
In 2010–11, two SFOs provided scholarships to 34,550 students at 1,114 private schools.
Student Eligibility
Students who qualify for free and reduced-price lunch (185 percent of the federal poverty level) and who are either enrolled in public school or are about to enter kindergarten or first grade are eligible to receive scholarships. Additionally, students in foster care are eligible. A family of four must have earned $41,347.50 or less to qualify in 2010. If a student’s household income rises, the student may stay in the program under full scholarship as long as the family earns no more than 230 percent of the poverty level. Participating private schools are required to accept scholarship students, but if they have more applicants than open seats, they are not required to admit students at random.
Legal Developments
No legal challenges have been filed against the program.
Rules & Regulations
- Income Limit: 100% x FRL
- Geographic Limit: Statewide
- Enrollment Cap: None
- Scholarship Cap: $4,106
- Testing Mandates: Yes-National
- Credit Value: 100%
- Credit Cap: None
- Program Cap: Escalator
Governing Statutes
2010 Florida Statutes, Chapter 1002.395
Additional Links
FTC Quarterly Reports
