Scholarship Tax Credits - Education Commission of the States

Scholarship Tax Credits

Tax credit limit

March 2021

Scholarship tax credit policies afford individuals or businesses who provide a donation with full or partial tax credits, depending on the state. Currently, 18 programs in 15 states cap the total tax credits awarded. Cap amounts range from millions to hundreds of millions of dollars or are subject to state appropriations.

STATE	Program Name arrow_upward	Tax Credit Limit
Alabama	Educational Scholarship	The tax credit is 100% of total contribution, which may not to exceed $50,000 for individual taxpayers or 50% of tax liability for commercial tax payers. Total cap for credits awarded: $30 million .
Arizona	Credit for Contributions to School Tuition Organization	The tax credit may not exceed $500 for taxpayers filing single, $100 for taxpayers filing jointly. This amount is adjusted by the department based on CPI. Total cap for credits awarded: $10,000 adjusted over the years following 2007-08.
	Credit for Contributions to School Tuition Organization; displaced students; students with disabilities	Total cap for credits awarded: $5 million.
	Premium tax credit for contributions to school tuition organization; low-income scholarships	Total cap for credits awarded: $10,000 adjusted over the years following 2007-08.
Florida	Florida Tax Credit Scholarship Program	Total cap for credits awarded: $229 million in the 2012-2013 state fiscal year, with certain annual increases.
Florida	The Hope Scholarship Program	$105 per motor vehicle.
Georgia	Georgia Tax Credit Program	The tax credit may not exceed $1000 for single tax filers and $2500 for couples filing jointly. Corporate tax filers may not receive more than 75% of their tax liability. Total cap for credits awarded: $100 million.
Illinois	Invest in Kids	Individual credits shall be equal to 75% of the total contribution, not to exceed a credit of $1,000,000 per taxpayer. Total cap for credits awarded: $75,000,000.
Indiana	School Scholarship Tax Credit	Individuals and corporations may receive tax credits for 50% of their contributions. Total cap for credits awarded: $16,500,000 for each fiscal year after June 30, 2020. Credits do not apply to scholarships to children participating in the early education grant pilot program.
Iowa	School Tuition Organization Tax Credit	Individual credits shall be equal to 65% of the total contribution. Total cap for credits awarded: $15,000,000 for calendar years beginning on or after January 1, 2020. During any calendar year beginning on or after January 1, 2022, if the amount of awarded tax credits from the preceding calendar year are equal to or greater than 90% of the total approved tax credits for the current calendar year, the total approved tax credits for the current calendar year shall equal the product of 10% multiplied by the total approved tax credits for the current calendar year plus the total approved tax credits for the current calendar year
Kansas	Tax Credit for Low Income Students Scholarship Program	Individual credits shall be equal to 70% total contributions, up to $500,000. Total cap for credits awarded: $10,000,000.
Kentucky	Education Opportunity Account Program	Individual credits shall be equal to 95% total contributions, up to $1,000,000. If a tax-payer makes a four year donation pledge, credits may be equal to 97% of total contributions. Total cap for credits awarded: $25,000,000
Louisiana	Tuition Donation Rebate Program	The tax credit shall be equal to the actual amount of the donation.
Montana	Tax Credits for Contributions to Student Scholarship Organizations	The amount of the credit allowed is equal to the amount of the donation, not to exceed $150.
Nevada	Nevada Educational Choice Scholarship Program	Total cap for credits awarded: $6,655,000.
New Hampshire	Education Tax Credit Program	85% of the contribution, which may not exceed $1 million in a given year. No business, enterprise, or individual may receive more than 10% of the aggregate amount of credits.
Oklahoma	Equal Opportunity Education Scholarship	The credit shall be equal to 50% of the total amount of contributions , not to exceed $1,000 for single individuals, $2,000 for married individuals filing jointly, or $100,000 for any taxpayer which is a legal business entity. Total cap for credits awarded: $3,500,000 annually.
Pennsylvania	Educational Improvement Tax Credit Program	The tax credit may not exceed 75% of the total contribution up to $750,000 per business. Business may received 90% of the total contribution if they provide a written commitment to provide the scholarship organization, educational improvement organization or opportunity scholarship organization with the same amount of contribution for two consecutive tax years. Total cap on credits awarded: $185 million
Pennsylvania	Opportunity Scholarship Tax Credit Program	The tax credit may not exceed 75% of the total contribution up to $750,000 per business. Business may received 90% of the total contribution if they provide a written commitment to provide the scholarship organization, educational improvement organization or opportunity scholarship organization with the same amount of contribution for two consecutive tax years. Total cap for credits awarded: $55 million
Rhode Island	Tax Credits for Contributions to Scholarship Organizations	Donating businesses are offered a 75% tax credit or 90% tax credit if the business has donated for two consecutive years and the second year's donation value is at least 80% of the first year's donation value. Contributing businesses may not be awarded a tax credit greater than $100,000 in any tax year. Total cap for credits awarded: $1.5 million.
South Carolina	Educational Credit for Exceptional Needs Children's Fund	Total cap for credits awarded: $12 million.
South Dakota	Partners in Education Tax Credit Program	Total cap for credits awarded: $2 million.
Virginia	Education Improvement Scholarships Tax Credits Program	A person making a donation will receive a tax credit at 65% of the value of the donation. Total cap for credits awarded: $25 million. For individual donors, the minimum donation that qualifies for a tax credit is $500. Tax credits will only be issued for the first $125,000 of donations made by individual donors.