Did Indiana opt into the federal scholarship tax credit?
Yes. Governor Mike Braun announced Indiana's opt-in on January 22, 2026, and on June 8, 2026 the IRS listed Indiana among 27 states taking part. IDOE is the state's operational lead and will certify the SGOs and publish the annual list.
The credit itself is federal: from January 1, 2027, a donor can take a nonrefundable credit of up to $1,700 for gifts to a participating SGO, carrying unused credit forward up to five years.
Which Indianapolis families could benefit from the 2027 federal credit?
Students eligible to enroll in K-12 whose household income is at or below 300% of the area's median gross income. Unlike Choice, the federal program can support public school, charter, nonpublic and homeschool students.
That homeschool line is the notable change for Indiana, where home instruction otherwise draws no state money. How large individual awards will be depends on what donors give and how each SGO sets its policy.
When will federal SGO scholarships be available?
Not before the 2027 tax year begins. An organization must apply to IDOE and be approved by December 31, 2026 to be a federal SGO for 2027, and scholarships follow the donations.
We will add the participating organizations and their application steps once IDOE posts the list.
| It is | It is not |
|---|---|
| A federal credit for donors to SGOs | A payment to families from the IRS |
| Open to homeschool students | A replacement for the Choice voucher |
| Income-tested at 300% of area median income | Universal like Choice |