Indiana - School Scholarship Tax Credit

school choice

Indiana – School Scholarship Tax Credit

Indiana – School Scholarship Tax Credit

Indiana’s tax-credit scholarship program was enacted in 2009 and launched in 2010 to help low- and middle-income families access the right school for their children’s needs. Learn more about the program’s details on this page, including eligibility, funding, regulations, legal history and more.

Program Fast Facts

  • 10,146 scholarships awarded (2018–19)

  • 61 percent of families with children income-eligible statewide

  • 6 scholarship organizations awarding scholarships (2018–19)

  • 341 schools participating (2018–19)

  • Average scholarship value: $2,145 (2018–19)

  • Value as a percentage of public school per-student spending: 21 percent

Program Details

Indiana’s School Scholarship Tax Credit Participation

Students Participating
School Year Ending

Click the + symbols to learn more about this program’s details.

Indiana offers donors tax credits for contributing to Scholarship Granting Organizations (SGOs), nonprofits that distribute private school scholarships.

Student Funding

Charitable donations made to scholarship-granting organizations fund the scholarships. Individuals and corporations may receive 50 percent tax credits for their donations to SGOs, and Indiana allocated $15 million for tax credits meant for SGO donations in 2019–20.

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 ($95,275 for a family of four in 2019–20). Children must be between ages 5 and 22 to participate. Current private school students can qualify.

EdChoice Expert Feedback

The eligibility restrictions on Indiana’s tax-credit scholarship program exclude many families. Just like public schools, the scholarships should be available to all children, regardless of their parents’ income. Additionally, the total cap on credits restricts the overall amount of money that follows students. Inclusion of current private school families who are eligible for the scholarship, regardless of whether they previously attended a public school, helps families who have sacrificed to give their children a better education. With the inclusion of these families, however, Indiana will need to raise the cap on available tax credits additionally to compensate for the increased demand. The program also deserves credit for avoiding unnecessary regulations.

Rules and 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: National
  • Credit Value: 50 percent
  • Total Credit Cap: None
  • Budget Cap: $15 million (2019–20)


SGO Requirements:

  • Use at least 90 percent of contributions for scholarships
  • Be certified by the state
  • Make scholarships available for more than one school
  • Conduct criminal background checks on all SGO employees and board members
  • Have an outside financial audit conducted and provide an annual report to the state

Governing Statutes

Ind. Code §§ 6-3.1-30.5 and 20-51-3

Legal History

No legal challenges have been filed against the program.

Questions about Educational Choice?

Choose your path.

Receive Educational Choice Updates Straight to Your Inbox.

Email Newsletter Signup

Follow Our Progress.

Receive Educational Choice Updates Straight to Your Inbox.

Email Newsletter Signup Engage

Privacy Policy