Indiana School Scholarship Tax Credit Passes
Program Becomes Law with State Budget

July 1 , 2009

Thousands of Indiana families will have the opportunity to access new school choices in the future with the passage of the Indiana School Scholarship Tax Credit Plan.  This is an important step forward for school choice after years of effort.

The program provides for a state tax credit of 50% for corporate or individual contributions to qualifying scholarship granting organizations designed to provide school choice scholarships for lower-income families. The program is entirely privately-funded, but with the tax credit to provide an incentive for expanded charitable support of scholarships. The program is capped at $2.5 million per year.

The program passed as part of the state’s budget bill, enacted and signed on Tuesday, June 30th within hours of the end of the fiscal year and an imminent state government shutdown.  The budget bill passed with bipartisan support after six months of heated debate and negotiations.  Governor Mitch Daniels, who had proposed the scholarship tax credit as part of his budget package, signed the budget bill making it law.

Although the program is smaller than the originally proposed $5 million dollar program, it will provide a great foundation for growth. “We consider this a big victory for Indiana families whose children will soon have an opportunity to attend a school of their choosing,” said Jeff Brantley, Executive Director of School Choice Indiana Network. “This is something we have been working toward for a long time.”

The tax credit plan was originally introduced by Sen. Carlin Yoder (R-Goshen) during the regular legislative session, securing Senate passage three times in the regular legislative session (including as part of the budget bill). The proposal was blocked in the House by Ways & Means Committee Chairman William Crawford (D-Indianapolis), resurrected in the special legislative session, and ultimately enacted as part of the budget.

“This was a dedicated effort by so many- including legislators, parents, local and national school choice organizations, our State Superintendent, and our Governor. Without the commitment of any one of these groups or individuals, none of this would have been possible,” added Brantley.

The School Choice Indiana Network and other local and national groups now turn their efforts to laying the groundwork for the program, so that families may benefit as soon as possible. We look forward to the hard work ahead and the opportunity that will be provided to many Indiana families. Please stay tuned for future updates on program developments. For more information please visit www.inscholarships.com.