School Scholarship Tax Credit

Indiana

Tax-Credit Scholarship

Average Value

$2,054

Schools Participating

381

Scholarships Awarded

11,405

Student Eligibility

About 98% of Indiana students are eligible for a scholarship. Children are eligible to receive scholarships if their family income does not exceed 400% of the guidelines needed to qualify for the federal Free and Reduced-Price Lunch (FRL) program ($220,000 for a family of four in 2024–2025). Children must be between ages 4 and 21 to participate. Current private school students qualify. _(Last updated July 22, 2024)_

Use of Funds

Qualifying expenses include tuition and expenses. _(Last updated July 3, 2024)_

Funding Amount & Source

Charitable donations made to SGOs fund the scholarships. Individuals and corporations may receive 50% tax credits for their donations to SGOs. SGOs determine scholarship amounts. Total credits claimed cannot exceed $18.5 million, meaning roughly 9,000 students can participate, or less than 1% of Indiana’s K–12 student population. The tax credits are not refundable. _(Last updated July 3, 2024)_

Legal History

No legal challenges have been filed against the program. _(Last updated September 20, 2024)_

Program Timeline

2009

Program Enacted

Legislation passed to create the program

2010

Program Launched

Program began accepting applications

2024

Last Updated

July 22, 2024

Program Guidelines

Income Limit400% x FRL
Prior Public SchoolNone
Enrollment CapNone
Testing MandateNationally norm-referenced or state tests
Special NeedsNone