The federal scholarship credit in Indiana
What it means for families in Indiana
K-12 students who live in Indiana can get a federal scholarship toward tuition and fees once the program starts. Household income has to be at or below 300% of your area's median, and foster children qualify automatically.
Scholarships are paid to a partner school, so the first step is finding out whether your child's school takes part. If it doesn't yet, recommend it and we'll reach out.
What it means for donors in Indiana
Any US taxpayer can donate and claim up to $1,700 against federal income tax, dollar for dollar, starting January 1, 2027. When you donate to CEN SGO, you choose the partner school your donation supports.
Indiana also has its own scholarship tax credit. Donors cannot claim a federal and state tax credit on the same funds, so your $1,700 federal credit contribution needs to be claimed separately from any claimed state credit contribution.
For schools in Indiana
Families only get scholarships through a partner school, so schools come first. Registering with CEN SGO costs nothing. It's one agreement, and CEN handles donor receipts, income checks, awards, payments and reporting.
Schools that register before donations open on January 1, 2027 can run a pledge campaign with their parents first.
Indiana at a glance
Indiana has opted in to the federal Education Freedom Tax Credit, so families here can get scholarships when the program starts on January 1, 2027.
- January 22, 2026
- Opted in to the federal credit
- Mike Braun
- Governor
- January 1, 2027
- The federal credit goes live
- $1,700
- The most a donor can claim each year
- 50% credit on any amount donated
- State scholarship credit
Key dates
Every date in one placeJanuary 22, 2026
Indiana opted in
October 1, 2026
Treasury publishes its proposed and temporary regulations
January 1, 2027
The first day a donation earns the federal credit
Next
February 15, 2027
States submit their lists of scholarship granting organizations to the IRS
December 31, 2027
The last day to donate for the 2027 return
Early 2028
IRS Form 8525 comes out and 2027 returns are filed
State credit
Indiana's own scholarship credit
Indiana operates a comprehensive tax-credit scholarship program. Indiana donors can receive a state tax credit for 50% of any amount donated to an SGO.
Questions
Questions about Indiana
Short answers for families and donors in Indiana. Every other question is on the FAQ page.
Does Indiana take part in the federal credit?
Yes. Opted in January 22, 2026. Families here can get scholarships when the program starts on January 1, 2027.
Who decided for Indiana?
Governor Mike Braun opted Indiana in. Each year the governor sends Treasury the list of qualifying scholarship granting organizations.
Can people in Indiana donate and claim the credit?
Yes. Any US taxpayer can claim up to $1,700 against federal income tax for a donation to a qualifying scholarship granting organization, starting January 1, 2027.
When does it start?
January 1, 2027. Donations made on or after that date count toward the credit.
Can I claim a state credit too?
Yes, with two separate donations. Donors cannot claim a federal and state tax credit on the same funds, so your $1,700 federal credit contribution needs to be claimed separately from any claimed state credit contribution.
Who is eligible for scholarships?
Eligible students must be enrolled in K-12 public, private, or religious schools, and their household income cannot exceed 300% of the area median gross income. Foster children meet the income requirement without verification.
How is my donation used?
SGOs are required to spend 90% of the contributions they receive on student scholarships.
Keep reading
Guides for families and donors
Other states that have opted in
Families in every opted-in state can get scholarships when the program starts. Each state has its own page.
Is your child's school in Indiana?
Recommend it and we'll reach out to the school about taking part. It takes a minute.