Partners in Education Tax Credit Program

Students whose family incomes do not exceed 150% of the federal Free and Reduced-Price Lunch (FRL) program ($86,580 for a family of four in 2024–2025) qualify for the program. Once a student has received a scholarship, that student remains eligible for three years; or if the student is entering high school, until high school graduation, regardless of income. After the initial period of income eligibility, scholarship students remain eligible if their family income in the prior year does not exceed 200% of the FRL program (115,440 for a family of four in 2024–2025). Starting in 2023, students in foster care are now eligible, regardless of income. _(Last updated July 18, 2024)_

Scholarships may be used to cover all or part of the tuition and fees at a qualifying school. _(Last updated July 18, 2024)_

The average value of all scholarships awarded by SGOs may be worth up to 82.5% of the state’s share of the per-pupil allocation ($4,956 in 2020–2021), although SGOs otherwise have discretion to determine scholarship amounts based on variables such as grade level and family income. Scholarships may be used for tuition and fees at qualifying schools. Tax credits from donors are worth 100% of the value of the contributions to scholarship organizations. Total credits claimed cannot exceed $5 million, meaning roughly 2,500 students can participate, or about 1% of South Dakota’s K–12 student population. _(Last updated July 18, 2024)_

No legal challenges have been filed against the program. _(Last updated September 27, 2024)_