Opportunity Scholarship Tax Credit Program

Students must live in a “low-achieving” school zone, with low-achieving defined as the state’s bottom 15% of public schools based on standardized test scores. Also, families are eligible only if their household incomes are less than $112,348 plus $19,775 for each child in the family in 2024–2025, adjusted annually for inflation. Students with special needs are eligible for scholarships if they come from families that earn 150% of the baseline income level (for example, a family with one child may earn up to $142,011 in 2024–2025) or less, and those with the most severe special needs are eligible if they come from families who earn 299% of the baseline income level ($171,475 for a one-child family in 2024–2025) or less. Scholarship Organizations must give preference to applications from students who received an application in the prior year or students whose household income does not exceed 185% of the Federal Poverty Level. _(Last updated July 26, 2024)_

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

Qualifying private donors contribute to approved Scholarship Organizations. Each Scholarship Organization determines scholarship amounts, which are capped at the amount of the school’s tuition and fees, or $8,500 for students without a disability and $15,000 for students with a disability. Students attending “economically disadvantaged schools”—those where 51% or more of students received an EITC/OSTC scholarship of at least $500 (K–8) or $1,000 (9–12) during the previous school year—may receive scholarships worth up to $10,500 for elementary students and $12,500 for secondary students. Students with special needs may receive up to $15,000, and students with special needs attending economically disadvantaged schools may receive up to $19,000. Public school boards may set up tuition grant programs that allow students to attend a public or private school. For private schools under such programs, the tuition grant is limited to the state’s per-pupil subsidy amount. 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. Credits are awarded to companies on a first-come, first-served basis until the $90 million cap is reached. (_Last updated July 26, 2024)_

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