Rhode Island’s tax-credit scholarship program, enacted in 2006 and launched in 2007, offers a 75 percent tax credit to businesses that donate to Scholarship Granting Organizations (SGOs). SGOs are nonprofits that offer private school scholarships of varying amounts to students from low-income households. Learn more about this tax-credit scholarship program’s funding, eligibility, regulations, and governing statutes on this page.
Rhode Island offers tax credits to businesses supporting Scholarship Granting Organizations (SGOs), nonprofits that provide private school scholarships.
Scholarship amounts are determined by SGOs.
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.
Students must have family incomes at or below 250 percent of the poverty level ($60,625 for a family of four in 2015-16).
No legal challenges have been filed against the program.