Who decided for South Dakota?

Governor Larry Rhoden opted South Dakota in. Each year the governor sends Treasury the list of qualifying scholarship granting organizations.

Can people in South Dakota 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.

January 1, 2027. Donations made on or after that date count toward the credit.

Does South Dakota have its own scholarship credit?

No. South Dakota doesn't run a scholarship tax credit for individuals, so there's one credit to claim: the federal one.

How does the priority framework work for families?

Scholarship granting organizations must follow a federal prioritization model. When awarding scholarships, organizations must consider prior-year recipients first, followed by siblings of current recipients, before opening the application pool to new families.

How do SGOs verify household income?

To keep the process simple but secure, organizations can verify household income using standard documents like paystubs, tax returns, W-2 forms, or documentation showing participation in needs-based federal or state programs.

Are my contributions protected from fraud?

Yes. SGOs must hold qualified contributions in separate, segregated accounts and are required to obtain annual financial and programmatic audits conducted by qualified, independent third parties to verify compliance.

The federal scholarship credit in South Dakota

What it means for families in South Dakota

K-12 students who live in South Dakota 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.

Check eligibility How to apply

What it means for donors in South Dakota

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.

South Dakota doesn't have its own scholarship tax credit for individuals, so the federal credit is the one to claim.

Estimate your credit The donor guide

For schools in South Dakota

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.

South Dakota at a glance

South Dakota has opted in to the federal Education Freedom Tax Credit, so families here can get scholarships when the program starts on January 1, 2027.

See where every state stands

November 14, 2025
Opted in to the federal credit: Larry Rhoden
Governor: January 1, 2027
The federal credit goes live: $1,700
The most a donor can claim each year: None
State scholarship credit

Official sources

Key dates

Every date in one place

November 14, 2025
South Dakota 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

Questions

Questions about South Dakota

Short answers for families and donors in South Dakota. Every other question is on the FAQ page.

Does South Dakota take part in the federal credit?
Yes. Opted in November 14, 2025. Families here can get scholarships when the program starts on January 1, 2027.
Who decided for South Dakota?
Governor Larry Rhoden opted South Dakota in. Each year the governor sends Treasury the list of qualifying scholarship granting organizations.
Can people in South Dakota 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.
Does South Dakota have its own scholarship credit?
No. South Dakota doesn't run a scholarship tax credit for individuals, so there's one credit to claim: the federal one.
How does the priority framework work for families?
Scholarship granting organizations must follow a federal prioritization model. When awarding scholarships, organizations must consider prior-year recipients first, followed by siblings of current recipients, before opening the application pool to new families.
How do SGOs verify household income?
To keep the process simple but secure, organizations can verify household income using standard documents like paystubs, tax returns, W-2 forms, or documentation showing participation in needs-based federal or state programs.
Are my contributions protected from fraud?
Yes. SGOs must hold qualified contributions in separate, segregated accounts and are required to obtain annual financial and programmatic audits conducted by qualified, independent third parties to verify compliance.

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.

All 50 states and DC

Is your child's school in South Dakota?

Recommend it and we'll reach out to the school about taking part. It takes a minute.