State approved non-for-profit organizations known as scholarship granting organizations (or commonly referred to as an SGO) collect private donations from individuals and businesses. Those donations are given as scholarships to low and middle income children so they can attend private schools.
In exchange for donating to an SGO, the donor receives a 50% tax credit on their state taxes.
In Indiana, there are four approved SGOs. They are:
- Choice Charitable Trust
- Sagamore Institute
- School Scholarship Granting Organization of Northeast Indiana, Inc.
- The Lutheran Scholarship Granting Organization of Indiana, Inc.
Currently, SGOs provide scholarships to thousands of Hoosier students throughout the state.
Click here to see if you are eligible for a Tax Credit Scholarship
In order to be eligible for a Tax Credit Scholarship, you must meet the following criteria:
- Indiana resident AND
- Families that are at least 200%, or below, the Federal Free and Reduced Lunch
Income Guideline (SGOs can set limits lower)
Tax Credit Scholarship Program Income Guidelines:
|Tax Credit Scholarship
(200% FR Lunch)
|For each additional
family member, add:
- Based off of adjusted gross income.
- This is based on 200% of the cap for Federal Free and Reduced Lunch
- SGOs may set their income limits lower than 200%
- Income levels are based on adjusted gross income for the household
How to Apply for the Tax Credit Scholarship Program:
- Determine if your family is eligible for a tax credit scholarship (see above).
- Find the private school that best meets the child's needs.
- Begin the application process at the school.
NOTE: Not all schools work with a scholarship granting organization (SGO), which are the non-for-profit organizations that distribute tax credit scholarships. Be sure to ask the school you're interested in if they work with an SGO. If they do, the school should be able to give you an application for a tax credit scholarship.