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Information for Charitable Donors

The purpose of the Indiana School Scholarship Tax Credit (STC) program is to help low and middle income families access the private or public school of their choice.  To provide an incentive to greater charitable giving, the program features a state tax credit.

The STC program will provide a 50% state tax credit for contributions made to qualified scholarship granting organizations (SGOs).

·         50% credit on state tax liabilities for contributions to SGOs.

·         Adjusted gross income tax, financial institutions tax and insurance premiums tax qualify.

·         Corporate or individual taxpayers eligible.

·         No limits on the size of contributions eligible.

·         Donations still qualify for federal deductions for itemized contributions, exempting the benefit received from the state tax credit (i.e. no itemization for credited tax liability). See federal tax rules and your accountant for more information.

·         $2.5 million per fiscal year cap on available state tax credits for up to $5 million in donations.  Contributions qualified for the tax credit, through a notification/application process to be determined by the Indiana Dept. of Revenue, on a first-come, first-served basis.

Donors would contribute to a qualified scholarship granting organization of their choice, which administer the program and assist the donor in applying for or having tax credits reserved (rules TBD).  Donors could not designate their contributions to benefit particular students or schools, though.

Additional information will be available as the State of Indiana promulgates rules and develops the systems to start-up and administer the tax credit system.  Stay tuned for more information.

Have Questions?

With the passage of STC only a month old, a number of questions and issues remain to be resolved in the rulemaking and implementation processes. We would be happy to try and answer your questions and plug you into our regular email updates.  Please contact Lindsey Brown at School Choice Indiana for more information.

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