Tax Credits For Contributions To Scholarship Granting Organizations

Program Information

  • STC
  • Program Type: Scholarship Tax Credit Program, Means Tested, Failing Schools, Corporate, Individual

Student Participation

  • Family income cannot exceed 185% of the federal poverty guidelines ($46,435 for a family of four in 2018)
  • Student must be zoned to attend a public school designated as failing (labeled as failing by the State Department of Education or is in the lowest 6% of public schools on the state assessment); once a student receives a scholarship, he or she remains eligible regardless of whether or not he or she remains zoned to attend a failing school
  • A†fter July 31 of each year, SGOs may award unaccounted scholarship funds to students whose family incomes do not exceed 185% of the federal poverty guidelines whether or not they are assigned to a failing school
  • A renewing student’s family income can increase to up to 275% of the federal poverty guidelines ($69,025 for family of four in 2018)
  • Comply with health and safety codes
  • Conduct criminal background checks on employees
  • Be accredited by state-recognized accrediting agency within three years
  • Demonstrate financial viability if it is to receive $50,000 or more in scholarships
  • Annually administer the state achievement test or nationally recognized norm-referenced tests to scholarship students and provide test results to the state
  • Provide graduation rates of scholarship students to the state
  • Maintain website that describes the school, the instructional program of the school, and the tuition and mandatory fees charged by the school
  • Use at least 95% of contributions for scholarships
  • Conduct criminal background checks on all employees and board members
  • Make scholarships portable to any qualifying school
  • Meet state and local health and safety requirements
  • Spend a portion of expenditures on scholarships for low-income students equal to the percentage of low-income students in the county where the SGO expends the majority of its scholarships
  • Ensure that at least 75% of first-time scholarship recipients were not enrolled in a private school during the previous year
  • Submit annually to the state:
    • Data on accepted contributions
    • Demographic data for students receiving scholarships
    • Financial audit performed by a certified public accountant
    • Policies and procedures used to determine scholarship eligibility
  • Verification that no SGO policy or procedure restricts parental choice
  • Verification of how priority is given to students zoned to attend a failing school
  • Expend scholarship funds by the end of the academic year ending within the calendar year immediately following receipt of the donation
  • May not enter into agreements with participating schools that restrict the schools to only accept scholarship students from a particular SGO and reject all other eligible students

Data Update

Scholarships Awarded
3,955
Schools Participating
151
SGOs Operating
5
2016 Donations
$29,699,374

Financial

Scholarship Cap
- $6,000 (grades K-5)
- $8,000 (grades 6-8)
- $10,000 (grades 9-12)
Tax Credit Value
- 100 percent of donation
Donor Tax Credit Cap
- 50 percent of tax liability, up to $50,000 for individuals and couples
- 50 percent of tax liability for corporations
Statewide Cap
- $30 million