Who may claim the credit?
The federal credit is for eligible individual taxpayers making qualifying cash contributions. Check current IRS guidance for full eligibility details.
SOUTH DAKOTA'S 2027 OPPORTUNITY
Understand the tax credit.
The federal scholarship tax credit may let eligible individuals claim up to $1,700 for qualifying cash contributions to listed scholarship granting organizations.
What is the maximum credit?
The limit is up to $1,700 per individual or up to $3,400 per couple, subject to eligibility and current program rules. The credit is nonrefundable.
When does the program begin?
The federal program is scheduled to begin January 1, 2027. Verify the current rules and timing before making a contribution.
Which contributions qualify?
The contribution must go to a qualifying SGO on the applicable state list. State participation alone does not establish that every organization or service qualifies.
What about afterschool and summer programs?
Eligible educational services may include tutoring, afterschool, and summer programs. These services may be offered through public schools or community organizations, but each must meet federal requirements. The federal tax credit is for eligible individual donors, not business donors. Confirm current rules before assuming a specific program qualifies.
Check official updates
South Dakota appears on the IRS list of states that made an advance election to participate in 2027, as of September 14, 2026. The state must also identify qualifying SGOs. Rules and lists may change.
Read the IRS Federal Scholarship Tax Credit page