Enacted 2009 • Launched 2010 • Tax-Credit Scholarship
Indiana’s School Scholarship Tax Credit program allows individuals and corporations to claim a 50
percent tax credit for contributions to approved Scholarship Granting Organizations (SGOs), nonprofits
that provide private school scholarships. There is no limit on the dollar amount of the tax credit that
can be claimed, although the total amount of tax credits awarded statewide is limited to $7.5 million.
Latest Stats (2012-13)
- Scholarships awarded: 4,638
- Schools participating: N.A.
- Scholarship organizations: 5
- Average scholarship value: $1,017
Scholarship amounts are determined by SGOs.
There is no limit on the dollar amount of the tax credit that can be claimed by individuals or businesses, although the total amount of tax credits awarded statewide is limited to $7.5 million. This limit increases to $8.5 million in 2015-16 and $9.5 million in 2016-17.
Children are eligible to receive scholarships if their family income does not exceed 200 percent of the
guidelines needed to qualify for the free and reduced-price lunch program ($87,136 for a family of four
in 2013-14). Children must be between ages five and 22 to participate. Current private school students
can qualify. Also, qualifying students must have been (1) enrolled in kindergarten, (2) a scholarship
recipient in the previous school year from a nonprofit organization that qualifies for certification as an
SGO, or (3) a scholarship recipient in the previous school year under this program.
No legal challenges have been filed against this program.
Rules & Regulations
• Income Limit: 200 percent x FRL
• Prior Year Public School Requirement: None
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: Full tuition
• Testing Mandates: Nationally recognized norm-referenced tests
• Credit Value: 50 percent
• Total Credit Cap: None
• Budget Cap: $7.5 million
Ind. Code 6-3.1-30.5 and 20-51
Robert Enlow | email@example.com