The Partners in Education Tax Credit Program

Program Information

  • STC
  • Program Type: Scholarship Tax Credit Program, Means Tested, Corporate (insurance companies only)

Student Participation

  • Family income cannot exceed 150% of the amount required to qualify for the free or reduced-price (FRL) lunch program ($69,652 for a family of four in 2018)
  • A renewing student remains eligible for three years, or if the student is entering high school, until high school graduation, regardless of household income; after initial period of income eligibility, a student remains eligible if family income does not exceed 200% of the amount required to qualify for FRL ($92,870 for a family of four in 2018)
  • Student must have received a scholarship under the Partners in Education Tax Credit Program the preceding semester, attended public school the preceding semester, be attending school in South Dakota for the first time or be entering kindergarten, 1st grade or 9th grade
  • Ensure that the participating student takes the norm-referenced tests or statewide assessments administered by the qualifying school
  • Be accredited by the Department of Education
  • Annually collect written documentation from qualifying schools that verify the school is accredited by the South Dakota Department of Education
  • Ensure that at least 90% of tax credit revenue is spent on scholarships
  • Carry forward no more than 25% of its revenue from contributions to the following fiscal year
  • Ensure that the average value of all scholarships awarded is worth up to 82.5% of the state‚Äôs share of the per-pupil allocation
  • Conduct background checks on all employees and board members
  • Ensure that scholarships are portable during the school year
  • Report to the state:
    • The name and address of each contributing company
    • The total number and total dollar amount of contributions received from each company
    • The total number and total dollar amount of scholarships awarded to eligible students, including the total number and dollar amount of scholarships awarded to low-income students and the percentage of first-time recipients of scholarships who were enrolled in public school in the prior school year
    • Financial audit performed by certified public accountant

Data Update

Scholarships Awarded
480
Schools Participating
42
2017 Donations
$290,000

Financial

Scholarship Cap
- Tuition and fees
Tax Credit Value
- 80 percent of donation
Donor Tax Credit Cap
- 100 percent of tax liability
Statewide Cap
- $2 million