|
Printer Friendly Version |
|
|
|
|
| Indiana School Scholarship Tax Credit Helping Families Achieve Education Goals | |
|
|
|
|
|
|
|
|
|
|
|
Program
Update Indiana
With the passage of the Indiana School Scholarship Tax Credit on June 30th, as part of the new state budget package, the state has taken an important step forward to provide additional school choice options for Hoosier families. We have received a great many inquiries from parents, schools, non-profits, donors, and policymakers about the scholarship tax credit (STC). Some of these we can answer today, while some we cannot until rules are adopted and programs begin to build-out. Regular updates by email and website will be forthcoming in the weeks ahead. Make sure you receive our special scholarship tax credit email updates (free registration). The Indiana Department of Education and Department of Revenue will be promulgating rules on how the STC program will operate, interpretations of program components, etc. in the weeks ahead. It is not yet clear when and how these rules will be adopted, so please stay tuned for updates. Also, various organizations will be assisting in the promotion and/or implementation of this program to help parents, scholarship programs, schools, and donors. Details on these programs are in development and news on how you can get involved will be provided as available. About
the STC Program The Indiana School Scholarship Tax Credit is designed to provide scholarship support for thousands of low and middle income families to enroll their children into the private or public school of their choice. Tens of thousands of Hoosier families desperately want new educational opportunities for their children. They see the opportunity to do something remarkable for their child’s future by choosing a better school, but they can’t afford the tuition. Scholarship programs for kindergartener through high school students do exist but are only able to serve a relatively small percentage of the very real need in the state. Funding for these scholarships will come from private, charitable donations to qualified scholarship granting organizations (SGOs). Donors (individuals or corporations) would be eligible to take advantage of a 50% credit against their state tax liability for contributions made to an SGO. The program is entirely privately-funded, with an incentive to charitable giving from the tax credit. Scholarship granting organizations must be non-profit, charitable organizations organized as IRS 501(c)(3) entities to provide scholarship programs. An SGO cannot limit the scholarships it provides under the program to children attending a particular school or group of schools. SGOs would be required to meet organizational and financial reporting requirements, as well. Participating schools must be accredited by a state, national or regional accreditation organization, administer the ISTEP+ or another nationally-recognized norm-referenced test, and meet other basic requirements in order to accept enrolling children receiving scholarships from the program. The effective date upon which tax credits will be available is yet to be determined. However, initial interpretations (subject to change) from state officials are that non-code regulations would preclude tax credits being available until after Dec. 31, 2009. While there are no limits on the size of qualifying contribution to an SGO, the entire tax credit program has a $2.5 million per state fiscal year cap (i.e. $5M at 50% cap). Qualifying contributions will be eligible for tax credits on a first-come, first-served basis through a system yet to be developed by the Indiana Department of Revenue. For more information on the program, please visit our Implementation Information Center and sign-up for our free email updates newsletter.
|
|
|
|
|
Copyright © 2009 School Choice Indiana. All Rights Reserved. contact webmaster School Choice Indiana One North Capitol, Ste. 1250 Indianapolis, IN 46204 www.schoolchoiceindiana.org |
|
