Montana Tax Credit Scholarships

Montana’s Student Scholarship Organization (SSO) program allows individuals and businesses to donate to approved nonprofit organizations, which then award scholarships to eligible students. Donors receive dollar-for-dollar tax credits, and families receive scholarships for private school tuition and approved educational services.

Program Type: Tax-credit funded scholarships (via Student Scholarship Organizations)

Who It Serves: All Montana students ages 5-18 – NO INCOME LIMIT

Maximum Scholarship Amount: Up to $6,000 per year (or the cost of tuition, whichever is less)

What It Covers:

• Private school tuition
• Approved educational services
• Tutoring
• Educational therapies
• Curriculum and materials (for eligible expenses)

How It Works:

For Donors (Individuals and Businesses):

1. Donate to an approved Student Scholarship Organization (SSO)
2. Receive dollar-for-dollar Montana tax credit
3. Tax credit up to $200,000 per year per taxpayer
4. Credits are non-refundable but can offset Montana state tax liability

For Families:

1. Families do NOT donate to SSOs themselves
2. Instead, families apply directly to an SSO for a scholarship
3. SSOs review applications for eligibility based on available funds and the organization’s criteria
4. SSOs award scholarships to students
5. Families use scholarships at accredited or nonaccredited private education providers in Montana that meet health and safety requirements

Program Funding:

• Statewide aggregate limit: $7.2 million for 2026
• Administered on a first-come, first-served basis until annual cap is reached
• Once $7.2 million in tax credits is allocated, no additional donations receive tax credits that year

Approved Student Scholarship Organizations (SSOs):

Families should identify a potential SSO early in the year, as some programs close applications once funds are allocated. Approved SSOs include:

• ACE Scholarships – Partner schools across the state
• Individual SSOs affiliated with specific private schools (e.g., St. Patrick’s Academy, Billings Catholic Schools, and others)
• Full list available on Montana Education Donations Portal

Application Process:

1. Identify an approved SSO on the Education Donations Portal
2. Contact the SSO directly to inquire about scholarship availability and application procedures
3. Submit application with required documentation (varies by SSO)
4. SSO reviews application and awards scholarship based on available funds
5. Enroll in approved private school or educational provider

Application Timing:

• Apply early in the year – Funding is first-come, first-served
• Some SSOs close applications once funds are allocated
• Statewide $7.2 million cap means scholarships may not be available late in the year

Important Notes:

• No income restrictions – All Montana families can apply regardless of income
• Scholarships average $2,200-$6,000 depending on the SSO
• Many private schools charge $8,000-$20,000+ annually, so scholarships often cover 25-50% of tuition
• Families are responsible for the remainder of tuition not covered by scholarship
• Private schools must meet Montana’s health and safety requirements but are not required to follow public school curriculum or testing mandates

Where to Find SSOs:

• Education Donations Portal: SSO Tax Credit Threshold Status – See SSO List in the drop down in the Student Scholarship Organization Tax Credit box
• Montana Department of Revenue: Tax Credit Guidance

Montana Education Donations Portal → See SSO List in the drop down in the Student Scholarship Organization Tax Credit box