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 has elected to participate in the program for 2027. South Dakota Partners in Education intends to participate as a Scholarship Granting Organization, subject to completion of all federal and state designation and certification 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.
