Enacted 2006 • Launched 2007 • Tax-Credit Scholarship
Rhode Island provides a credit on corporate income taxes for donations to Scholarship Granting
Organizations (SGOs), nonprofits that provide private school scholarships. Tax credits are worth 75
percent of the contribution, or 90 percent if donated for two consecutive years and the second year’s
donation is worth at least 80 percent of the first year’s donation. The total amount of tax credits is
capped at $1.5 million. Each corporate donor can receive only $100,000 in tax credits each year, and
cannot use surplus donations in one year to generate tax credits in future years.
Latest Stats (2012-13)
- Students participating: 382
- Schools participating: 54
- Scholarship organizations: 5
- Average scholarship value: $2,690
Each SGO determines the amount of the scholarships it distributes.
Students must have family incomes at or below 250 percent of the poverty level ($58,875 for a family
of four in 2013-14).
No challenges have been made to this program.
Rules & Regulations
• Income Limit: 250 percent x poverty
• Prior Year Public School Requirement: None
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: None
• Testing Mandates: None
• Credit Value: 75 percent / 90 percent
• Total Credit Cap: Yes
• Budget Cap: $1.5 million
R.I.G.L. §§ 44-62-1 to 44-62-8
Michael Chartier | firstname.lastname@example.org