Indiana Senate Passes Scholarship Tax Credit
February 19 , 2009

INDIANAPOLIS –The Indiana Senate has passed a bill to create a new state tax credit to help thousands of Hoosier families attend the public or private school of their choice.
On a 35-15 bipartisan vote, the Indiana Senate today passed Senate Bill 528, authored by Senator Carlin Yoder (R-Middlebury), would create the Indiana School Scholarship Tax Credit.  Donors to a qualified scholarship program would be allowed to claim a 50% state tax credit for their contribution. These programs would provide scholarships to lower income families to pay private school tuition or fees related to public school transfers in grades kindergarten through the 12th grade.

“Thousands of parents looking for educational options will be able to access them with this program,” said Jeff Brantley, Executive Director of School Choice Indiana. “Not only will it provide new school choices, but it does so without a net cost to the state or taxpayers.”
Scholarships under the program would be funded entirely through private, charitable donations and the tax credit is designed to provide an incentive for donations. Fiscal analyses show that the program will actually result in reduced costs for state government as the cost of private education scholarships are significantly lower than per-pupil state tuition support levels.

“I want my child to have the best education I can find,” said Ardella Aikens, an Indianapolis mother participating in the Educational CHOICE Charitable Trust scholarship program. “These scholarships will help thousands of moms like me to help their kids, too.”

Senate Bill 528 would provide up to $5 million per year in state tax credits, which could provide over 3,000 scholarships a year statewide. Similar scholarship tax credit programs exist in several states, including Pennsylvania, Florida, Iowa, Georgia and Arizona. 

The bill now moves to the Indiana House of Representatives for consideration.