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.

For more information, contact Mr. Andy Morris, President of Mater Dei High School: amorris@evdio.org or (812) 421-5727.

Scholarship Tax Credit FAQ

How can I donate?

Donations should be made to:
Institute for Quality Education
Attn: SGO Donations

101 West Ohio St
Suite 700
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 in the following school year.

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