Indiana School Scholarship Tax Credit

For the 2025-2026 school year, about 98% of Indiana students are eligible. They may receive scholarships if their family income does not exceed 400% of the guidelines needed to qualify for the FRL program. Children must be between ages 5 and 21 (by October 1 of the current school year) to participate. Currently enrolled private school students qualify. For the 2026-2027 school year and beyond, the income requirement will be removed, and all Indiana students will be eligible. Individuals and corporations may receive a 50% tax credit for their donations to SGOs. SGOs determine scholarship amounts. Total credits claimed cannot exceed $18.5 million, meaning roughly 9,000 students can participate, or less than 1% of Indiana’s K–12 student population. The tax credits are not refundable. 

Funding Mechanism: Private donors fund this program by donating to SGOs. They receive tax credits for their donation, up to certain limits. 

Universal Eligibility: ✅
Universal Usage: ❌
Universal Funding: ❌
Truly Universal: ❌

(Last updated December 16, 2025)

Qualifying expenses include tuition and expenses.

(Last updated December 16, 2025)

View program requirements for parents, schools, and scholarship granting organizations by clicking on each hyperlink.

(Last updated December 16, 2025)

Ind. Code §§ 6-3.1-30.5 and 20-51-1  

(Last updated April 21, 2025)