Indiana School Scholarship Tax Credit
Indiana’s School Scholarship Tax Credit Program provides businesses with tax credits for donations to scholarship organizations. These scholarships help families afford private school tuition through private business contributions instead of automatic public funds.
Program Type: Tax-Credit Scholarship (funded via 50% tax credits for donors)
How It Works: Indiana’s Scholarship Granting Organizations (SGOs) provide scholarships funded entirely by private, charitable donations. Donors receive a 50% state tax credit against their Indiana tax liability.
Who It Serves: Students must come from households earning no more than 300% of the federal free and reduced lunch threshold
How Families Access Scholarships:
- Families apply for SGO scholarships through certified scholarship granting organizations (SGOs) that partner with participating private schools
- SGO evaluates eligibility and awards scholarships
- Scholarships are paid directly to schools
- Families can use SGO scholarships to supplement other funding
Program Capacity:
- $18.5 million annual cap in tax credits per state fiscal year (July 1–June 30)
- Awards are not guaranteed; based on SGO funding available
- First-come, first-served until cap is reached
Key SGOs in Indiana:
- Sagamore Institute Scholarships for Education Choice
- Institute for Quality Education (IQE)
- The Lutheran SGO of Indiana
- School Scholarship Granting Organization of Northeast Indiana
- Full List of SGOs
Combining with Choice Scholarship:
- Yes, SGO scholarships can supplement Choice Scholarships
- Combined amount cannot exceed tuition and fees
- School’s financial aid office coordinates the awards
Application Timeline: Year-round, depending on the individual SGO and participating school. Inquire at your school of choice about which SGOs partner with that school and their specific application timelines.
Donor Incentive: Donors receive a 50% state tax credit against their Indiana tax liability, making donations more affordable while funding scholarships for eligible students.
School Scholarship Credit – Indiana Department of Revenue →
School Scholarships – Indiana Department of Education →