Fund the future of education in Louisiana and help families choose the best school for their children. By utilizing the Louisiana scholarship tax credit, you can redirect your state taxes directly into scholarships that give students access to high-quality K-12 education.
State tax credit details
In Louisiana, you can redirect any amount to a certified SGO and receive a 100% state tax credit against your state income tax liability. This credit applies to all redirected funds that are directly used for student scholarships. To ensure maximum funding reaches the classroom, Louisiana state law mandates that at least 95% of these redirected funds must be spent on scholarships.
Applicable federal rules
The federal Section 25F program launching in January 2027 offers a federal tax credit of up to $1,700. However, because federal rules require reducing your federal credit by any state tax credit claimed for the same redirect, claiming a 100% Louisiana state credit for the same funds means you will not be eligible to claim the federal credit.
FAQs for families and donors
Who is eligible for these scholarships?
Scholarships are available to K-12 students whose household income does not exceed 300% of the area median gross income. Foster children qualify automatically without separate income verification.
What educational expenses are covered?
The program covers standard K-12 expenses, including tuition, school fees, books, and supplies. It also covers supplementary services such as academic tutoring and special needs therapy.
Can SGOs operate in multiple states?
Yes, SGOs can operate across state lines. However, a multistate SGO must be officially authorized to do business in Louisiana and must maintain a separate, Louisiana-specific segregated account to track local contributions.
