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.

Partnering with families, donors, schools, and the people of South Dakota to empower school choice.

We provide tax-credit scholarships for K–12 students across South Dakota.

Private school tuition can be expensive. We help make it affordable.

Every parent wants their children to be in the best learning environment for their particular needs. South Dakota Partners in Education empowers parents with tuition support so parents can choose the school that’s right for their children, regardless of cost.

Empower

We work with families, schools, and tax-credit contributors to empower school choice.

Engage

We engage with tax-credit contributors to support income-eligible families in local communities by funding scholarships.

Enrich

We enrich South Dakota by providing alternative funding to help schools and families educate the next generation of leaders.

Making a difference across South Dakota

South Dakota Partners in Education is making a difference for families, schools, and taxpayers.

“Our school has been part of SDPE from the start. The program allows families to choose the educational setting that they believe will best meet the needs of their students. Numerous families have expressed their appreciation for the help SDPE provides in ensuring that money does not prevent them from making the choice they think is right for their student(s).”

“Each child has unique developmental skills, ability levels, and personalities. This program allows parents an opportunity to choose the best learning environment for their child to thrive.”

A Statewide Network of Partner Schools

South Dakota Partners in Education partners with accredited private schools across South Dakota. Any accredited private school can apply to partner with us. So, if your school of choice isn’t a partner yet, we can help them apply!

What is a state tax-credit scholarship?

South Dakota Partners in Education awards tax-credit scholarships to make K–12 tuition more affordable for South Dakota families. Participating insurance companies that make approved tax-credit contributions to South Dakota Partners in Education may receive a South Dakota insurance premium tax credit while helping fund scholarships for eligible students.