Federal Scholarship Tax Credit Program
Beginning January 1, 2027, eligible individuals may receive a dollar-for-dollar federal income tax credit for qualifying contributions to approved Scholarship Granting Organizations. Under proposed Treasury and IRS guidance released October 1, 2026, the annual credit may be up to $1,700 per individual, or up to $3,400 for married couples filing jointly when each spouse makes qualifying contributions.
South Dakota Partners in Education submitted its application to the South Dakota Department of Education on October 23, 2026, for inclusion on South Dakota’s list of participating Scholarship Granting Organizations. SDPE’s participation remains subject to state certification, submission to the IRS, and completion of the applicable federal registration requirements.
The federal program will be completely separate from the South Dakota Insurance Premium Tax Credit Scholarship Program that SDPE currently administers. The existing state program remains unchanged.
