South Dakota opted in
The state has elected to participate in the federal scholarship tax credit program for 2027.
SOUTH DAKOTA'S 2027 SCHOLARSHIP TAX CREDIT
A New Path
to Opportunity
Support students through scholarship giving.
Beginning January 1, 2027, eligible individual donors may be able to claim a federal tax credit for qualifying cash gifts to listed scholarship granting organizations: up to $1,700 per individual, or up to $3,400 per couple.
Explore the opportunityTax credit availability depends on current federal rules, state participation, the SGO's status, and your circumstances. This is general information, not tax advice.
WHY THIS MATTERS
A new funding path for student opportunity.
The Great Plains Opportunity Education Fund is a scholarship granting organization. The federal program gives eligible individual donors a potential way to support scholarships for qualifying educational services through an approved SGO. Services may include tutoring, afterschool, summer programs, and other eligible educational services when they meet federal requirements.
$1,700 individual / $3,400 couple
The federal credit limit is up to $1,700 per individual, or up to $3,400 per couple, subject to current program rules.
Educational services
Potential qualifying services include tutoring, afterschool, and summer programs, subject to federal rules.
Choose a school or program
Donors may designate a school district or program, but not an individual scholarship recipient.
Afterschool and summer programs: Tutoring, afterschool, summer programs, and other educational services may qualify when they meet federal requirements. Individual donors may designate a school district or program, but not an individual participant; the SGO determines scholarship recipients under program rules.
HOW TO APPROACH IT
Understand the details before you give.
This opportunity is for eligible individual donors, not business donors, who want to support qualifying educational services such as tutoring, afterschool, and summer programs. Donors may designate a school district or program, not individual participants. Contributions must go to a qualifying SGO on the state's applicable list, and tax outcomes depend on federal rules and your circumstances.
01
Check the process
See the current steps and the conditions for a qualifying contribution.
02Review the credit
Explore the federal limit, timing, and eligibility caveats.
03Learn why it matters
Read about the opportunity for students and local learning programs.
Official information and background
IRS Federal Scholarship Tax CreditSouth Dakota participation announcementAfterschool Alliance opportunity brief
Program details can change. Verify the current IRS information and consult a qualified tax professional about your circumstances.