Check the current state list
South Dakota has elected to participate in the federal program for 2027. The state must also identify the SGOs that can receive qualifying contributions.
A CLEAR PATH TO GIVING
How it works
South Dakota has opted into the 2027 federal scholarship tax credit program. This opportunity is for eligible individual donors who want to support qualifying educational services, such as tutoring, afterschool, and summer programs. Here are the key things to check before making a contribution.
START WITH THE DETAILS
Give with clarity and confidence.
An eligible gift must satisfy state and federal requirements. The SGO list and rules about qualifying education expenses matter as much as the state opting in. Tutoring, afterschool, and summer programs may qualify when they meet the rules. Individual donors may designate a school district or program, not individual recipients.
Explore tax-credit detailsConfirm the SGO is listed
Only contributions to a qualifying SGO on the applicable state list can qualify for the federal credit. Do not assume an organization is listed until you verify it.
Review timing and contribution limits
The federal program is scheduled to begin January 1, 2027. The credit limit is up to $1,700 per individual or up to $3,400 per couple, subject to eligibility and current rules.
Designate a district or program
Donors may designate a school district or program, but not an individual scholarship recipient. The SGO determines recipients under applicable program rules.
Ask a tax professional
The credit is nonrefundable, and your eligibility and tax result depend on current rules and your circumstances. Keep your records and get personal tax advice.
Important
The IRS page lists South Dakota among states that made an advance election for 2027, as of September 14, 2026. Check the IRS page again before donating for the latest state and SGO information.
View the IRS program page