Indiana State Tax Credit Explained A new giving opportunity that helps students and families and provides a significant tax credit for donors… The Indiana School Scholarship Tax Credit Law, enacted by the Indiana Legislature in 2009 provides scholarship support to allow thousands of low and middle income families to enroll their children in private schools of their choice. Donors (individuals or corporations) are eligible for a 50 percent credit against their state tax liability for contributions made through a Scholarship Granting Organization (SGO) in addition to their regular federal tax deduction. The SGO for Catholic schools in the Archdiocese of Indianapolis is the Educational CHOICE Charitable Trust. CHOICE has granted over $20 million in scholarships to private school students since This is an unprecedented opportunity to assist families with the cost of Catholic education and receive tax benefits, too! The law now allows gift designations to a specific school or group of schools, but not to specific students. The school must have …continued on back

$5000 in donations to allow designations. Scholarship amounts can be determined by the school as long as the minimum is $500 or more annually. To be eligible for a scholarship a family must have an income that is 200 percent or less of the federal reduced lunch income level. The school choice Law (HEA 1003) allows an eligible student who has been enrolled in a public school for two semesters to receive a state voucher to attend a Catholic school. The only other way a Catholic school student can become eligible for a state voucher is to enter the school on an SGO scholarship in kindergarten or first grade. After two semesters the student whose family meets voucher income levels (150 percent or less of federal reduced lunch) can receive a voucher. It is the goal of the archdiocese to have schools identify every eligible potential kindergarten/first grade student and offer the opportunity for a CHOICE scholarship so that the student can become eligible for a state school voucher. Eligibility can only be established during the first year of enrollment and could qualify a student for a state voucher of $4,500 or more annually for the next 12 years – a potential total of $54,000 to $64,000. The law caps total scholarship tax credits at a maximum of $5 million per school year statewide, so make your donation today!

Indiana State Tax Credit Individual Contribution to Educational CHOICE Charitable Trust ($10,000 Gift Example) With Tax CreditWithout Tax Credit State (50%)$5,000$0 Federal (35%)$3,500 Savings$8,500$3,500 Out of Pocket$1,500 15% $6,500 65%

The Impact of Your Dollars ($10,000 Gift Example) 1 Kindergarten Student ($500 SGO Scholarship) 20 Kindergarten Students ($500 SGO Scholarship) X 12 Year Education (on voucher program) X 12 Year Education (on voucher program) $60,000 Generated in Voucher Money $1.2 Million Generated in Voucher Money * The voucher program allows a student to receive up to $4,500 in benefits per year for grades 1-8 and even higher in high school See your Catholic school principal or visit for more information, donor and student application forms

Indiana State Tax Credit Individual Contribution to Educational CHOICE Charitable Trust ($5,000 Gift Example) With Tax CreditWithout Tax Credit State (50%)$2,500$0 Federal (35%)$1,750 Savings$4,250$1,750 Out of Pocket$750 15% $3,250 65%

The Impact of Your Dollars ($5,000 Gift Example) 1 Kindergarten Student ($500 SGO Scholarship) 10 Kindergarten Students ($500 SGO Scholarship) X 12 Year Education (on voucher program) X 12 Year Education (on voucher program) $60,000 Generated in Voucher Money $600,000 Generated in Voucher Money * The voucher program allows a student to receive up to $4,500 in benefits per year for grades 1-8 and even higher in high school See your Catholic school principal or visit for more information, donor and student application forms

Indiana State Tax Credit Individual Contribution to Educational CHOICE Charitable Trust ($1,000 Gift Example) With Tax CreditWithout Tax Credit State (50%)$500$0 Federal (35%)$350 Savings$850$350 Out of Pocket$150 15% $650 65%

The Impact of Your Dollars ($1,000 Gift Example) 1 Kindergarten Student ($500 SGO Scholarship) 2 Kindergarten Students ($500 SGO Scholarship) X 12 Year Education (on voucher program) X 12 Year Education (on voucher program) $60,000 Generated in Voucher Money $120,000 Generated in Voucher Money * The voucher program allows a student to receive up to $4,500 in benefits per year for grades 1-8 and even higher in high school See your Catholic school principal or visit for more information, donor and student application forms