Scholarship Tax Credit
Indiana’s Scholarship Tax Credit Program
Giving Families Educational Options and Providing Tax Credits for Supporters
Mater Dei High School and its feeder schools are partnering to create greater access for students to attend Catholic schools. The Scholarship Tax Credit Program enables more low- to middle-income students to attend a school of their choice.
We believe that all students deserve to attend a quality school regardless of their families’ financial background.
Scholarship Tax Credit FAQ
How can I donate?
Donations should be made to:
Institute for Quality Education
Attn: SGO Donations
101 West Ohio St
Indianapolis, IN 46204
How does the Scholarship Tax Credit Program work?
Corporate or individual taxpayers can donate and receive a 50% credit against state tax liability for contributions to a certified Scholarship Granting Organization (SGO)
Taxes applicable: adjusted gross income tax, financial institutions tax, insurance premiums tax
No program limits on the size of contributions to SGOs in a year, but the tax credit amount cannot exceed a taxpayer’s state tax liability
Statewide cap: $8.5 million of tax credits per year (qualifying up to $10 million in donations)
Who does this program help?
Students must qualify for the program according to income guidelines based on 200% of the federal free and reduced lunch program
Example of how this program works
A donor makes a $2,000 gift to the Institute for Quality Education (formerly known as Educational CHOICE Charitable Trust)
The donor can claim a credit of $1,000 (50% of the gift) against his Indiana State Tax liability
The donor may deduct $1,000 (the total gift less the Indiana credit) on his/her Federal Income Tax return (assuming he/she itemizes deductions). If he/she is in the 25% Federal tax bracket, this can reduce his tax liability by $250
$2,000, less $1,000 State tax credit, less $250 Federal tax benefit = $750 net cost to the donor
The Institute for Quality Education will send the donor information on claiming the tax credit
The donor is always encouraged to check with an accountant
How do these scholarships relate to vouchers?
All kindergarten students, current non-public students, and students that transfer from a public school that meets the income guidelines are eligible for a scholarship. Many of these students will then be eligible for a voucher