Enacted 2006 • Launched 2007 • Tax-Credit Scholarship
Rhode Island provides a credit on corporate income taxes for donations to Scholarship
Organizations, nonprofits that provide private school scholarships. Tax credits are worth 75
percent of a taxpayer’s 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 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 (2010)
- Students participating: 342
- Schools participating: 55
- Scholarship organizations: 5
- Average scholarship value: $2,727
Average scholarship value as a percentage of
Rhode Island’s total per-student spending ($14,723)
Each Scholarship Organization is able to determine the amount of the scholarships it distributes
to participating families.
Students must have family incomes at or below 250 percent of the poverty level ($57,625 for a
family of four in 2013).
No challenges have been made to this program.
Rules & Regulations
- Income Limit: 250% x Poverty
- Geographic Limit: Statewide
- Enrollment Cap: None
- Scholarship Cap: None
- Testing Mandates: None
- Credit Value: 75%/90%
- Credit Cap: Yes
- Program Cap: $1 million
Title 44-62 of the Rhode Island General Laws
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