Invest in Kids Scholarship Tax Credit Program

Program Information

  • STC
  • Program Type: Scholarship Tax Credit Program, Means Tested

Student Participation

  • Family income cannot exceed 300% of the federal poverty guidelines ($75,300 for family of four in 2018)
  • Renewing student’s family income can increase to 400% of federal poverty guidelines ($100,400 for family of four in 2018)
  • Priority given to: returning scholarship students; students whose family income does not exceed 185% of the federal poverty guidelines ($46,435 for family of four in 2018); students who live in a focus district (district that has at least one school where at least one student subgroup average performance is at or below the state average for the lowest 10% of student performance or a school with an average graduation rate of less than 60%); and students who are siblings of current scholarship students
  • Be recognized by the State Board of Education
  • Comply with health and safety codes and federal and state nondiscrimination laws
  • Conduct background checks on school employees
  • Annually administer state assessments
  • Use at least 95% of contributions for scholarships
  • Carry forward no more than 25% of contributions to the following calendar year; starting with the 2022-23 school year, no contributions may be carried forward
  • Must allow students to transfer a scholarship to any other participating school during the school year
  • Must not allow corporate contributions to be directed to a particular school or subset of schools, but may allow individual contributions to be directed to a school or subset of schools
  • Comply with the antidiscrimination provisions of 42 U.S.C. 2000d
  • Report to the state annually:
    • Total number of certificates of receipt issued and the total dollar amount of contributions received
    • Total dollar amount of scholarships awarded to eligible students
    • Name and address for which scholarships were issued, including the number, grade, race, gender, income level and total dollar value of scholarship used at each school by priority group
    • Financial audit performed by certified public accountant

Data Update

2018 Donations as of 8/1/2018
$42,180,417*

Financial

Scholarship Cap
- Whichever is less:
– Tuition and fees OR
– Statewide average operational expense per pupil
- 100% for students whose household income is less than 185% of the federal poverty guidelines ($46,435), 75% for students whose household income is 185% to 249% of the federal poverty guidelines ($46,435 to $62,499) and 50% on for students whose household income is 250% to 400% of the federal poverty guidelines ($62,750-$100,400)
- Students eligible to receive services under the Individuals with Disabilities Education Act can receive 200% of the average operational expense per pupil; students who are English learners can receive 120%; students who are giŸed and talented can receive 110%
Tax Credit Value
- 75% of donation
Donor Tax Credit Cap
- Students eligible to receive services under the Individuals with Disabilities Education Act can receive 200% of the average operational expense per pupil; students who are English learners can receive 120%; students who are giŸed and talented can receive 110%
Statewide Cap
- $100 million
- Credits are awarded in a manner geographically proportionate to enrollment in private schools in the state, as determined by the Indiana Department of Revenue; if the cap is not reached by June 1, remaining credits are awarded on a first-come, first-served basis