For Donors: South Dakota State Scholarship Program
South Dakota Partners in Education administers South Dakota’s Insurance Premium Tax Credit Scholarship Program. Scholarships provided through this program are funded by approved tax-credit contributions from participating insurance companies.
Participating insurance companies may receive a South Dakota insurance premium tax credit equal to 100 percent of an approved contribution. Companies must follow the required authorization and contribution procedures established for the state program.
SDPE also accepts general charitable gifts from individuals and businesses. General charitable gifts are separate from insurance-company tax-credit contributions and do not qualify for the South Dakota insurance premium tax credit.
Looking for the new federal tax credit?
Beginning in 2027, eligible individual donors may qualify for a separate federal scholarship tax credit. Under proposed Treasury and IRS guidance, the credit may be up to $1,700 per individual or $3,400 for married couples filing jointly when each spouse makes qualifying contributions. SDPE’s federal participation remains subject to the required designation and certification.
How It Works
An insurance company can receive a state premium tax credit up to 100% of contributions to SDPE. The program’s total tax credit contributions allowed by law are subject to the annual cumulative tax credit limit of $5.0 million. The credit claimed cannot be applied to taxes collected for the Workers’ Compensation Advisory Council or the tax on fire insurance premiums. Specific questions on the amount of premium tax credit can be referred to the Division of Insurance.
Insurance companies who are interested in contributing are asked to submit a Tax Credit Authorization Form to South Dakota Partners in Education. SDPE coordinates the authorization with the South Dakota Division of Insurance.
Upon receiving an approved contribution, SDPE provides a Division-approved tax-credit receipt. Contributions are subject to the statewide annual $5 million tax-credit limit and the Division of Insurance’s authorization requirements. Companies must identify the quarterly or annual premium tax return on which the approved credit will be claimed. Contact SDPE for current contribution availability, authorization instructions, and deadlines.
Thank you for your support of education choice in South Dakota!
Current Tax-Credit Contributors
In addition to the companies listed below, 11 additional insurance-company tax-credit contributors have chosen to keep their participation confidential.