The Friedman Foundation for Educational Choice

Advancing Milton and Rose D. Friedman's Vision of School Choice for All Children

Indiana - School Scholarship Tax Credit

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

Program Details

Student Funding
Each SGO determines the amount of the scholarships it distributes.

Student Eligibility
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.

Legal Developments
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

Governing Statutes
Ind. Code 6-3.1-30.5 and 20-51

Friedman Contact
Robert Enlow |

Related Research

10/30/2014 The School Starter Checklist: Meeting the Private Education Regulations in States with School Choice
5/30/2014 Public Rules on Private Schools: Measuring the Regulatory Impact of State Statutes and School Choice Programs
4/29/2014 Sector Switchers: Why Catholic Schools Convert to Charters and What Happens Next
2/11/2014 Why Indiana Voucher Parents Choose Private Schools
1/10/2011 Indiana K-12 and School Choice Survey
9/2/2009 Florida’s Lessons for Indiana K-12 Reform
4/22/2009 The Fiscal Impact of a Corporate and Individual Tax-Credit Scholarship Program on the State of Indiana
4/22/2009 The Fiscal Impact of a Corporate and Individual Tax-Credit Scholarship Program on the State of Indiana
2/10/2009 Expanding Choice: Tax Credits and Educational Access in Indiana

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