What is a Tax-Credit Scholarship?
Tax-credit scholarships programs allow Individuals and corporations to donate to a designated scholarship granting organization (SGO) and get a tax credit . In other words , Tax-credit scholarships incentivize individuals and businesses to donate to nonprofit organizations that provide tuition scholarships to eligible students . Donors receive the 100 percent, dollar-for-dollar tax-credit which they use to reduce their tax liability. Therefore , the tax-credit scholarship programs use entirely private funds to offer private school scholarships to families in need of money for education purpose.
Who can donate for tax-credit scholarship?
Both individuals and businesses can participate in the tax-credit scholarship program. In some states, scholarship-giving nonprofits also provide innovation grants to public schools and/or transportation assistance to students choosing alternative public schools .
States with tax-credit scholarship programs
Eighteen states have tax-credit scholarship programs. These states are -Alabama, Arizona (4), Florida (2), Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Montana, New Hampshire, Nevada, Oklahoma, Pennsylvania (2), Rhode Island, South Carolina, South Dakota and Virginia.