How does this work?

Student Funding

Scholarship funding relies on contributions made by insurance companies to an SGO, in return for an 80 percent tax credit for contributions made in that fiscal year. Tax credits may be collected beginning in fiscal year 2017. Only companies that are liable to pay the insurance company premium and annuity tax may claim the credit. The program is capped at $2 million in 2016–17.

The average value of all scholarships awarded by the SGO would be worth up to 82.5 percent of the state’s share of the per-student allocation ($2,624 in 2015–16). Half of the scholarship must be paid at the beginning of the first semester, and the second half at the start of the second semester.