What is a Tax-Credit Scholarship?

Tax-credit scholarships allow taxpayers to receive full or partial tax credits when they donate to nonprofits that provide private school scholarships. Eligible taxpayers can include both individuals and businesses. In some states, scholarship-giving nonprofits also provide innovation grants to public schools and/or transportation assistance to students choosing alternative public schools.

Watch the short, animated video below to see how tax-credit scholarships work for families.

Eighteen states have tax-credit scholarship programs.

Check out the list below for quick links to those program details, which include family eligibility tests, participation numbers, funding amounts and more.

Alabama (AL)

Alabama – Education Scholarship Program

Arizona (AZ)

Arizona – Original Individual Income Tax Credit Scholarship Program

Arizona – Low-Income Corporate Income Tax Credit Scholarship Program

Arizona – Lexie’s Law for Disabled and Displaced Students Tax Credit Scholarship Program

Arizona – “Switcher” Individual Income Tax Credit Scholarship Program

Florida (FL)

Florida Tax Credit Scholarship Program

Florida – Hope Scholarship Program

Georgia (GA)

Georgia – Qualified Education Expense Tax Credit

Illinois (IL)

Illinois – Invest in Kids Program

Indiana (IN)

Indiana – School Scholarship Tax Credit

Iowa (IA)

Iowa – School Tuition Organization Tax Credit

Kansas (KS)

Kansas – Tax Credit for Low Income Students Scholarship Program

Louisiana (LA)

Louisiana – Tuition Donation Rebate Program

Montana (MT)

Montana – Tax Credits for Contributions to Student Scholarship Organizations

New Hampshire (NH)

New Hampshire – Education Tax Credit Program

Nevada (NV)

Nevada – Educational Choice Scholarship Program

Oklahoma (OK)

Oklahoma Equal Opportunity Education Scholarships

Pennslyvania (PA)

Pennsylvania – Educational Improvement Tax Credit Program

Pennsylvania – Opportunity Scholarship Tax Credit Program

Rhode Island (RI)

Rhode Island – Tax Credits for Contributions to Scholarship Organizations

South Carolina (SC)

South Carolina – Educational Credit for Exceptional Needs Children

South Dakota (SD)

South Dakota – Partners in Education Tax Credit Program

Virginia (VA)
Virginia – Education Improvement Scholarships Tax Credits Program

Tax-Credit Scholarship Fast Facts

Do you know how many kids across the country are using tax-credit scholarship programs? Which state has the biggest tax-credit scholarship program? For more little-known truths about these programs, visit our Tax-Credit Scholarship fast facts.

TAX-CREDIT SCHOLARSHIP FAST FACTS