The Friedman Foundation for Educational Choice

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

Rhode Island - Tax Credits for Contributions to Scholarship Organizations

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

Program Details

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

Student Eligibility
Students must have family incomes at or below 250 percent of the poverty level ($58,875 for a family of four in 2013-14).

Legal Developments
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

Governing Statutes
R.I.G.L. §§ 44-62-1 to 44-62-8

Friedman Contact
Michael Chartier | michael@edchoice.org

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
10/29/2013 Rhode Island K-12 and School Choice Survey
2/5/2008 Grading School Choice: Evaluating School Choice Programs by the Friedman Gold Standard

Related News

3/12/2014 National Review Online | Choosing to Learn
1/23/2014 U.S. voucher, school choice enrollment reaches record high
10/29/2013 Majority of Rhode Island Democrats support school vouchers
8/15/2013 Sharing your story in “The ABCs” can be as easy as one, two, three
8/6/2013 Stateline | Tax Dollars for Private School Tuition Gain in States
1/23/2013 “The ABCs of School Choice,” 2013 Edition, Now Available
4/7/2011 Reed | Follow other states’ lead, support school choice in Oregon

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