Educational Improvement Tax Credit Program

Children are eligible for scholarships if their household incomes are less than $112,348 plus $19,775 for each child in the family in 2024. For example, a family with one child must have an income below $132,123, whereas a family with three children must have an income below $171,673. The figures increase in subsequent years to account for inflation. Students with special needs are eligible for scholarships if they come from families who earn 150% of the baseline income level (for example, a family with one child may earn up to $142,011 in 2024) or less, and those with the most severe special needs who are enrolled in special education-specific schools are eligible if they come from families who earn approximately 299% of the baseline income level ($171,475 for a one-child family in 2024) or less. _(Last updated July 15, 2024)_

Qualifying expenses include tuition, fees, and district transportation. _(Last updated July 26, 2024)_

Qualifying private donors contribute to approved SOs and then each SO determines scholarship amounts. Most tax credits are worth 75% of the contribution; however, a 90% credit can be claimed if the corporation commits to two consecutive annual contributions. In either case, the maximum tax credit is $750,000 per company; however, this cap is lifted from October 1 through November 30 during years when there are unclaimed credits. Tax credits for contributions to the scholarship organization for economically disadvantaged students are worth 85% of the contribution, increase to 99% for a commitment to two consecutive annual contributions, and are not subject to the maximum limit per company. Credits are awarded to companies on a first-come, first-served basis until the $540 million cap is reached. No less than $60 million of the credits must be used for scholarships for economically disadvantaged students, and no more than $30.5 million of the credits may be used for scholarships for pre-kindergarten students. _(Last updated July 26, 2024)_

No legal challenges have been filed against the program. _(Last updated July 26, 2024)_