U.S. Department of Education

Education Options in the States:

 State Programs that Provide Financial 

Assistance for Attendance at Private 

Elementary or Secondary Schools
Education Options in the States: 

State Programs That Provide Financial Assistance for 

Attendance at Private Elementary or Secondary Schools 

 

Office of Non-Public Education 

Office of Innovation and Improvement 

U.S. Department of Education

2007 

 
U.S. Department of Education 

Margaret Spellings 

Secretary 

Office of Innovation and Improvement 

Morgan Brown 

Assistant Deputy Secretary 

Office of Non-Public Education 

Jack Klenk 

Director 

August 2007 

This report is in the public domain. Authorization to reproduce it in whole or in part is 

granted. While permission to reprint this publication is not necessary, the citation should 

be: U.S. Department of Education, Office of Innovation and Improvement, Education 

Options in the States: State Programs That Provide Financial Assistance for Attendance 

at Private Elementary or Secondary Schools, Washington, D.C., 2007. 

This report is available on the Department’s Web site at: 

http://www.ed.gov/parents/schools/choice/educationoptions/index.html. 

This report contains links to Web sites created and maintained by organizations other 

than the U.S. Department of Education. They are provided for the reader’s convenience. 

The U.S. Department of Education does not control or guarantee the accuracy, relevance, 

timeliness, or completeness of this outside information. Further, the inclusion of links or 

pointers to particular items in hypertext is not intended to reflect their importance, nor is 

it intended to endorse any views expressed or products or services offered on these 

outside sites, or the organizations sponsoring the sites. 
Contents 

List of Tables.........................................................................................iv 

Preface.................................................................................................v

Acknowledgments.............................................................................................................vi 

Introduction..........................................................................................1 

 

Overview of State Programs......................................................................3 

Descriptions of State Programs..................................................................6 

Arizona.................................................................................................6 

Florida..................................................................................................9 

Georgia...............................................................................................11 

Illinois.................................................................................................12 

Iowa.....................................................................................................13 

Maine.................................................................................................14 

Minnesota...........................................................................................15 

Ohio...................................................................................................17 

Pennsylvania.........................................................................................20 

Rhode Island........................................................................................21 

Utah...................................................................................................21 

Vermont.............................................................................................23 

Wisconsin............................................................................................24 

District of Columbia..............................................................................25 

Appendix A: Statutes of State Programs.......................................................27 

Appendix B: Web Resources.....................................................................34

iii 
Tables 

Table 1. State Programs That Were Enacted as of August 2007..............................3 

Table 2. Number of Participating Students and Average Amount of 

 Assistance in Voucher or Voucher-like Tuition Assistance ........................4 

Table 3. Scholarship Organizations and Scholarships Awarded in 

 Tax Credits or Tax Deducation Programs for Contributions to 

 Scholarship Organizations, 2006-07...................................................5 

Table 4. Number of Claiming Taxpayers and Average Amount of 

 claim in Tax Credit or Deducation Programs for Education 

 Expenses, 2005 Taxable Year..........................................................5 

iv
Preface 

In recent years, parents have benefited from a significant expansion of educational 

options for their children. Parents have many more opportunities than just a few years 

ago to choose from an array of public school options, including charter, virtual, and 

magnet schools. Expanding educational options for parents is one of the hallmarks of the 

federal No Child Left Behind Act of 2001 (NCLB), and it remains one of the President 

Bush's highest priorities. 

Parents also have access to an increasing number of state programs that provide financial 

support for their children to attend private schools. As of August 2007, there were 24 

programs in 13 states and the District of Columbia that provide financial assistance in the 

form of voucher or voucher-like tuition assistance, tax credits, and tax deductions, 

compared with seven programs in seven states a decade ago. 

This new report, Education Options in the States: State Programs that Provide Financial 

Assistance for Attendance at Private Elementary or Secondary Schools, provides 

information on these programs. We trust it will be a useful reference for parents, 

educators, researchers, public officials, and others. 

Morgan Brown 

Assistant Deputy Secretary 

Office of Innovation and Improvement 

U.S. Department of Education

v
Acknowledgments 

The Office of Non-Public Education in the Office of Innovation and Improvement of the 

U.S. Department of Education is pleased to provide this report on state programs that 

provide financial assistance for student attendance at private elementary and secondary 

schools. The information in this report is obtained primarily from state laws and 

regulations, official state documents, and Web sites of state education and revenue 

agencies. To the extent possible, state officials have confirmed information in this report. 

The Office of Non-Public Education is solely responsible for any errors or omissions. 

The Office of Non-Public Education is grateful to Kelly Rhoads and Meghan Lerch for 

their research, writing and other contributions to this report. We also wish to thank 

Morgan Brown, assistant deputy secretary for innovation and improvement, and Virginia 

Gentles, associate assistant deputy secretary for parental rights, for their support for this 

report and for making it available to the public. We also thank those individuals in the 

states who have helpfully contributed to or reviewed drafts of this report, including: Lyle 

Friesen, Tanya Amador-Kaufman, and Adria Lugo Arizona Department of Education; 

Paulette Mainwood, Florida Department of Education; Donna Luallen, Illinois State 

Board of Education; Elizabeth Calhoun and Michael Lipsman, Iowa Department of 

Education; Patrick Dow and Buzz Kastuck, Maine Department of Education; Jay 

Brennan, Foxcroft Academy, Dover-Foxcroft, Maine; Carole Wald and Eric Johnson, 

Minnesota Department of Revenue; Saundra Berry and Kimberly Murnieks, Ohio 

Department of Education; Sheri Rowe, Pennsylvania Department of Education; Janet 

Durfee-Hidalgo, Rhode Island Department of Education; Larry Shumway, Utah State 

Office of Education; Pat Pallas Gray and Vaughn Altemus, Vermont Department of 

Education; and Lisa Geraghty and Tricia Collins, Wisconsin Department of Public 

Instruction. 

Jack Klenk 

Director

Office of Innovation and Improvement 

Office of Non-Public Education 

U.S. Department of Education

vi
Introduction 

This report provides information on state programs that provide financial assistance for 

student attendance at private elementary and secondary schools. 

Types of programs discussed in this report 

In this report, state programs are grouped in the following two general types: 

1. Voucher or voucher-like tuition assistance programs

2. Tax credit or tax deduction programs

The following descriptions of these general types are provided to assist the reader. 

1. Vouchers are payments made to a parent or to an educational institution for a 

student’s education expenses. The term “scholarship” is also used to describe this 

form of payment. Vouchers may be funded publicly by tax dollars, or privately by 

scholarship organizations. This report describes only publicly funded voucher 

programs, sometimes referred to as “tax-supported scholarships.” Educational 

institutions that accept voucher students may also be public or private. This report 

focuses on voucher programs that allow for attendance at private elementary and 

secondary schools. Education expenses covered by vouchers normally include 

tuition, and may also include a range of fees and transportation costs. Vouchers may 

cover such expenses in full or in part. 

Voucher programs may be designed so that assistance is available only to students 

who meet certain eligibility criteria. Student eligibility criteria used in state voucher 

programs may include but are not limited to: original school of attendance, area of 

residence, family income, and disability. In classifying state programs into the 

voucher type, this report accordingly includes a further short description of the set of 

students eligible for assistance. For instance, this report refers to the voucher 

program in the state of Wisconsin as providing vouchers to students from low-income 

families in Milwaukee. 

“Voucher-like tuition assistance” refers to a particular kind of assistance provided 

by the states of Maine and Vermont. In these states, school districts that have no 

available public schooling—normally, school districts in small towns or rural areas—

may send students to private schools or to public schools in other districts. Sending 

school districts pay the receiving school’s tuition, or a portion thereof, on behalf of 

the student. 

2. Tax credit and tax deduction programs reimburse education-related expenses fully 

or partially via tax relief. Tax credit programs provide direct reductions to taxpayers’ 

tax liability. Tax deduction programs provide reductions in taxable income prior to 

calculation of tax liability. As with voucher programs, this report focuses on tax 

credit and tax deduction programs that provide assistance for student attendance at 

1
private elementary and secondary schools. 

Tax credit and tax deduction programs may be designed to provide tax relief to 

specific recipients for specific education-related expenses. In this report, tax credit 

and tax deduction programs are further classified as applicable to a) individual or 

corporate taxpayers for charitable contributions to organizations that provide 

scholarships for attendance at private schools; and b) parent (or guardian) taxpayers 

for education expenses including, but not limited to, private school tuition. 

 

Organization of the report 

Information on state programs in this report is organized in two sections, followed by two 

appendices. 

Overview of State Programs provides an overview of the state programs, including 

tables of selected state program data. Data are presented in tables according to program 

type. 

Descriptions of State Programs provides individual summary descriptions of the 

respective state programs. Where available, information is provided on the following 

topics: program type, name, description, amount of assistance, number of participants, 

authorizing statute, legislative history, judicial history, and sources for more information. 

Appendix A provides citations for the authorizing statute(s), with expanded statute 

descriptions and hyperlinks to statutory documents, for each of the respective state 

programs. 

Appendix B lists Web resources for further information on the state programs and for 

information on issues in private school choice generally. 

2
Overview of State Programs 

The following tables provide data for state programs that were enacted as of August 2007. 

Table 1. State Programs That Were Enacted as of August 2007. 

State Program Type Description Year 

Enacted 

Arizona Tax Credits Tax credits for individuals for contributions to 

scholarship organizations 

1997 

Arizona Tax Credit Tax credits for corporations for contributions to 

scholarship organizations 

2006 

Arizona Vouchers Vouchers for students with disabilities 2006 

Arizona Vouchers Vouchers for foster care children 2006 

Florida Vouchers Vouchers for students in failing schools 

(Note: This program was terminated at the end 

of the 2005-06 school year.)

1999 

Florida Vouchers Vouchers for students with disabilities 1999 

Florida Tax Credits Tax credits for corporations for contributions to 

scholarship organizations 

2001 

Georgia Vouchers Vouchers for students with disabilities 2007 

Illinois Tax Credits Tax credits for parents for education expenses 1999 

Iowa Tax Credits Tax credits for parents for education expenses 1987 

Iowa Tax Credits Tax credits for individuals for contributions to 

School Tuition Organizations 

2006 

Maine Tuition 

Assistance 

Voucher like tuition assistance for students in 

small towns and rural areas

1873 

Minnesota Tax Credits 

and Tax 

Deductions 

Tax credits and tax deductions for parents for 

education expenses 

1955/ 

1997 

Ohio Vouchers Vouchers for students in Cleveland 1995 

Ohio Vouchers Vouchers for autistic students 2003 

Ohio Vouchers Vouchers for students in underperforming 

schools 

2006 

Pennsylvania Tax Credits Tax credits for corporations for contributions to 

scholarship organizations 

2001 

Rhode Island Tax Credits Tax credits for corporations for contributions to 

scholarship organizations 

2006 

Utah Vouchers Vouchers for students with disabilities 2005 

Utah Vouchers Vouchers for all students 

(Note: The implementation of this program is 

subject to a statewide referendum in November 

2007.) 

2007 

Vermont Tuition 

Assistance 

Voucher like tuition assistance for students in 

small towns and rural areas

1869 

Wisconsin Vouchers Vouchers for students from low-income families 

in Milwaukee 

1990 

District of 

Columbia 

Vouchers Vouchers for students from low-income families 

(Note: This program is federally funded) 

2004 

3
Voucher or voucher-like tuition assistance programs 

Table 2. Number of Participating Students and Average Amount of Assistance in 

Voucher or Voucher-like Tuition Assistance Programs. Data is for the 2006-07 

School Year (as of August 2007) except as noted. Items bolded indicate the maximum 

scholarship amount. 

State Participating Students

(2006-07)

Average or Maximum 

Amount of Assistance 

(2006-07)

Arizona: for students with 

disabilities 34 $7,735 

Florida: for students with 

disabilities 18,273 $6,517

Maine: for students in small 

towns and rural areas 6,017a $7,205b

Ohio: for students in Cleveland 5,921 $2,830 

Ohio: for autistic students 570 $17,500 

Ohio: for students who attend 

low-performing schools 2,785 $5,000c

Utah: for students with 

disabilities 330 $4,436 

Vermont: for students in small 

towns and rural areas 2,913d $8,890e

Wisconsin: for students from

low-income families in 

Milwaukee 

 17,410 $6,501 

Washington, D.C.: to students 

from low-income families 1,802 $7,500 

Sources: Officials and Web sites of state education agencies 

 

a Data from the 2005-06 school year. b Amount is the 2005-06-tuition rate for secondary schools in Maine. c Maximum amount is for high school, for elementary it is $4,250. d Data from the 2005-06 school year. e Amount is the 2005-06 average tuition for Vermont secondary schools.

4
Tax credit or tax deduction programs 

To individuals or corporations for contributions to scholarship organizations: 

Table 3. Scholarship Organizations and Scholarships Awarded in Tax Credit or Tax 

Deduction Programs for Contributions to Scholarship Organizations, 2006–07 

State Scholarship Organizations Scholarships Awarded

Arizona: tax credits to 

individuals 56 24,678

Florida: tax credits to 

corporations 3 16,629 

Pennsylvania: tax 

credits to corporations 300 39,477a

Sources: Officials and Web sites of state education and revenue agencies

To parents for education expenses: 

Table 4. Claiming Taxpayers and Average Amount of Claim in Tax Credit or Tax 

Deduction Programs for Education Expenses, 2005 Taxable Year 

State Claiming Taxpayers Average Amount of Claim 

Illinois: tax creditsb 207,275 $328

Iowa: tax credits 183,600 $83 

Minnesota: tax credits 57,114 $269 

Minnesota: tax 

deductions 226,141 $1,214 

Sources: Officials and Web sites of state education and revenue agencies 

 

a Data includes pre-K students as well. b Data are for 2004 taxable year.

5
Descriptions of State Programs

Following are individual summary descriptions, by state, of the respective state programs

providing financial assistance for attendance at private elementary and secondary 

schools. When available, information is provided on the following topics: program type, 

name, description, amount of assistance, number of participants, authorizing statute, 

legislative history, judicial history, and sources for more information. 

1. Arizona—Individual School Tuition Organization Tax Credit 

Program type: Tax credits for individuals for contributions to scholarship organizations

Description: Individual taxpayers may receive Arizona income tax credits for charitable 

contributions to school tuition organizations (STOs). The amount of credit is equal to the 

amount contributed. The maximum credit allowed to single taxpayers or heads of 

household is $500. The maximum credit allowed to married couples for the 2006 taxable 

year and subsequent taxable years is $1,000. There is no maximum aggregate amount of 

tax credits allowed in any year. 

STOs provide scholarships for attendance at qualified private schools. Schools enrolling 

scholarship students may not discriminate on the basis of race, color, handicap, familial 

status, or national origin. Student eligibility for scholarships is determined by STOs 

individually. Most STOs base eligibility on financial need, while others benefit students 

in specific areas or private school system.

Amount of assistance: The scholarship amount is established by STOs individually. 

Number of participants: During the 2006-07 school year, 24,678 students received 

scholarships from 56 STOs to attend 357 participating private schools.

Authorizing statute: A.R.S. § 43-1089 

Legislative history: The Arizona tax credit program was enacted in 1997 and first 

implemented in the 1998 taxable year. It was the first program of its kind in the U.S. On 

May 20, 2005, Arizona increased the maximum tax credit available to married couples. 

Judicial history: In January 1999, the Arizona Supreme Court upheld the 

constitutionality of the tax credit program in Kotterman v. Killian. In October 1999, the 

U.S. Supreme Court declined to review the case, thereby allowing the state ruling to 

stand. In February 2000, the Arizona Civil Liberties Union filed a second, separate 

challenge to the program in federal district court in Winn v. Hibbs. The district court 

dismissed the suit under the Tax Injunction Act, which forbids federal court tax suits if 

state court suits are possible. This dismissal was later overturned by the U.S. Court of 

Appeals for the Ninth Circuit, whose ruling was affirmed by the U.S. Supreme Court in 

June 2004, returning the case to federal district court for trial. The case was subsequently 

dismissed in federal district court on March 24, 2005. 

6
For more information, see: http://www.azdor.gov/ResearchStats/Schooltaxcredit.htm. 

2. Arizona—Corporate School Tuition Organization Tax Credit 

Program type: Tax credits for corporations for contributions to scholarship organization 

Description: Corporations may receive a tax credit for contributing to a scholarship 

organization. The amount of credit is equal to the amount contributed. Under the state 

statute, the maximum aggregate amount of tax credits is $10 million in 2007 and 

increases annually by 20 percent. Tax credits are awarded to corporations on a firstcome, first-serve basis. 

STOs provide scholarships for attendance at qualified private schools in the state. To be 

eligible for one of these scholarships, the student’s family income cannot exceed 185 

percent of the income limit required for students to qualify for federal free or reducedprice lunch program. Additionally, the student must have attended a public school during 

the prior year or be entering kindergarten. In order to be a state qualified school, schools 

may not discriminate on the basis of race, color, handicap, familial status or national 

origin. 

Amount of assistance: The maximum scholarship for K–8 students is $4,200, and $5,500 

for students in grades 9–12. These limits are set to increase by $100 each year. 

Number of participants: The program begins in the 2007 taxable year. 

Authorizing statute: A.R.S. § 43 -1183 

Legislative history: On March 29, 2006, this program was signed into law, thereby 

creating a new tax credit program to corporations for contributions to scholarship 

organizations. The law originally established the annual aggregate amount of credits at 

$5 million; the amount was increased to $10 million by another bill enacted later that 

legislative session. 

Judicial history: On March 7, 2007, a Maricopa County Superior Court judge threw out 

the case against Arizona’s Corporate School Tuition Organization Tax Credit. In Green 

v. Garriott, the judge held that the tax credit did not violate the Arizona constitution 

upholding the Kotterman decision made on the individual tax credit. 

3. Arizona—Arizona Scholarships for Pupils with Disabilities Program 

Program type: Vouchers for students with disabilities 

Description: This scholarship program provides special needs children with the option of 

attending another public school or receiving a scholarship for attendance at a qualified 

private school. Established in 2006, the program allocates $2.5 million for special needs 

7
students to use for tuition and fees or the actual cost per pupil, whichever is greater. To 

be eligible, a student must have an Individualized Education Program (IEP) and must 

have attended a public school during the prior year. In order to be a state-qualified 

school, schools may not discriminate on the basis of race, color, handicap, familial status 

or national origin. 

Amount of assistance: The amount of assistance is the school’s tuition and fees or actual 

cost per pupil, whichever is greater, but may not exceed the amount of funding the 

student would have generated had he or she remained in a public school. For the 2006-07 

school year, the average scholarship amount of assistance was $7,735 with scholarships 

ranging from $3000 to $23,000. 

Number of participants: For the 2006-07 school year 34 students received scholarships 

to participate in this program.

 

Authorizing statute: A.R.S. §15-891- A.R.S. §15-891.06

Legislative history: On June 21, 2006, the Scholarship for Pupils with Disabilities 

Program was signed into law, creating a new statewide voucher program to students with 

disabilities. The first year of implementation is the 2006-07 school year. 

Judicial history: On June 13, 2007, the Maricopa County Superior Court judge ruled that 

the scholarships for student with disabilities were constitutional and did not violate the 

state’s Blaine Amendment. 

For more information, see: http://www.ade.az.gov/hb2676/. 

4. Arizona—Displaced Pupils Choice Grant Program1

Program type: Vouchers for foster care children 

Description: These scholarships will be available to any student who has been in the 

foster care system at any time before high school graduation. Students who have since 

been adopted will still qualify for the voucher. Vouchers will be on a first come first 

served basis and can be used to pay tuition at any private school in the state of Arizona 

that chooses to participate. Participating schools may not discriminate on the basis of 

race, color, handicap, familial status or national origin. 

Amount of assistance: Currently, vouchers are capped at $5,000 or the selected schools 

tuition whichever is less; the state has allocated $2.5 million for this program. 

Number of participants: The first year of this program will be the 2007-08 school year. 

Authorizing statute: A.R.S. §15-817- A.R.S. §15-817.07 

 

1

 This program has not been implemented yet.

8
Legislative history: In 2006, the Displaced Pupils Choice Grant Program was signed into 

law. 

Judicial history: On June 13, 2007, the Maricopa County Superior Court judge ruled that 

the scholarships for displaced pupils were constitutional and did not violate the state’s

Blaine Amendment. 

. 

For more information, see: http://www.ade.az.gov/displacedpupilgrants/. 

5. Florida—Opportunity Scholarship Program2

Program type: Vouchers for students in failing schools

Description: Created in 1999 under Florida’s A+ Education Plan, the Opportunity 

Scholarship Program provides scholarships to students who attend or are assigned to 

failing Florida public schools. A Florida public school is considered “failing” if it 

receives, in annual performance evaluations, a grade of “F” in any two of four 

consecutive years. Students may use scholarships for attendance at a participating private 

school or at a higher performing public school (of grade “C” or better) within or adjacent 

to the student’s district of residence. Participating schools must accept students on a 

religious-neutral basis, and may not require students to participate in religious activities. 

Amount of assistance: To attend a participating private school, the annual scholarship 

amount is the local school districts per pupil operating cost or the school’s tuition and 

fees, whichever is less. For the 2005-06 academic year, the average scholarship award 

was $4,205. Participating private schools must accept the scholarship amount as full 

payment of tuition and fees. 

Number of participants: In 2005-06, 734 students received scholarships to attend 57 

participating private schools.3

 The 2005-06 was the last year that students were able to 

use the vouchers to attend private schools. See judicial history for more information.

Authorizing statute: Fla. Stat. § 1002.38 

Legislative history: The program was enacted in 1999.

Judicial history: On Jan. 5, 2006, the Florida Supreme Court ruled to exclude the private 

school option from Florida’s voucher program to students in failing schools, on the 

grounds that it violates a constitutional requirement of the state to provide a uniform

system of public schooling, in Holmes v. Bush. The court’s ruling took effect at the end 

of the 2005-06 school year. The ruling does not affect the program’s public school 

option.

 

2 The private school voucher component of this program was terminated at the end of the 2005-06 school year. 3 Data are as reported in the Opportunity Scholarship Program, June 2006, quarterly report, by the Office of 

Independent Education and Parental Choice, Florida Department of Education.

9
For more information, see: http://www.floridaschoolchoice.org/Information/OSP/. 

6. Florida—John M. McKay Scholarships for Students with Disabilities 

Program 

Program type: Vouchers to students with disabilities

Description: Named for former Florida Senate President John McKay, the John M. 

McKay Scholarships for Students with Disabilities Program provides scholarships to 

students who have attended a Florida public school and possess an Individualized 

Education Plan (IEP) in accordance with rules of the state board of education. Students 

may use scholarships for attendance at a participating private school or may attend 

another public school within or adjacent to the student’s district of residence.

Amount of assistance: To attend a participating private school, the annual scholarship 

amount is the estimated calculation of the amount the student would have generated in 

the assigned public school, or the private school’s tuition and fees, whichever is less. For 

the 2006-07 year, the average scholarship award was $6,517. Parents may provide tuition 

and fee funds in excess of the scholarship amount, if necessary. 

Number of participants: During the 2006-07 school year, 18,273 students received 

scholarships to attend 811 participating private schools.4

Authorizing statute: Fla. Stat. § 1002.39 

Legislative history: The program was enacted and implemented as a pilot in one county 

in 1999. It was expanded statewide, but with a cap for each school district, in 2000. The 

governing statute has been amended subsequently, time strengthening the “parentdirected” intent of the program. In 2001, the law was amended to allow parents who 

believe their student is not progressing in his or her assigned public school to notify the 

local school district of their intent to participate in the program; previously, parents had 

to document that the student was not progressing in two areas in his or her IEP. A second 

2001 amendment repealed the cap on the number of McKay scholarships available in 

each district. 

Judicial history: No legal suits have been filed regarding the program. 

For more information, see: http://www.floridaschoolchoice.org/Information/McKay/. 

7. Florida—Corporate Tax Credit Scholarship Program 

 

4 Data are as reported in the John M. McKay Scholarships for Students with Disabilities Program, June 2007, 

quarterly report, by the Office of Independent Education and Parental Choice, Florida Department of 

Education. 

10
Program type: Tax credits to corporations for contributions to scholarship organizations 

Description: Under the Corporate Tax Credit Scholarship Program, corporations may 

receive Florida tax credits for charitable contributions to nonprofit scholarship funding 

organizations (SFOs). The amount of credit is equal to the amount contributed and may 

not exceed 75 percent of tax due for the taxable year. Taxpayers may not contribute 

more than $5 million to any single SFO. Under the authorizing statute, the maximum 

aggregate amount of tax credits allowed in any year is $88 million, at least 1 percent of 

which is reserved for small businesses. Tax credits are awarded to corporations on a 

first-come, first-serve basis. 

SFOs provide scholarships for attendance at a participating private school or for 

transportation to attend a public school outside a student’s district of residence. 

Participating private schools must be deemed compliant with state laws and regulations

by the state. To be eligible, students must have attended or been assigned to a Florida 

public school, and qualify for the free or reduced-price lunch program under federal law.

Amount of assistance: To attend a participating private school, SFOs provide annual 

scholarships of $3,750 or the cost of tuition, allowable fees and transportation costs, 

whichever is less.

Number of participants: In 2006-07, 16,629 students received scholarships from three 

SFOs to attend 926 participating private schools.5

Authorizing statute: Fla. Stat. § 220.187 

Legislative history: The tax credit program was signed into law on May 30, 2001. It was 

first implemented in the 2002 taxable year. A 2003 amendment to the authorizing statute 

raised the maximum aggregate amount of credits allowed from $50 million to $88 

million. The maximum amount, or cap, was reduced to $50 million for the 2004 and 

2005 fiscal years by separate appropriations legislation. A budget measure for fiscal year 

2006, enacted on May 25, 2005, restored the cap to the statutory $88 million amount. 

Judicial history: No legal suits have been filed regarding the program.

For more information, see: http://www.floridaschoolchoice.org/Information/CTC/. 

8. Georgia—Georgia Special Needs Scholarship Act 

Program type: Vouchers to students with disabilities 

Description: This program provides scholarships to students with special needs. 

Students who are eligible for these scholarships must have spent a prior year in 

 

5 Data are as reported in the Corporate Tax Credit Scholarship Program, February 2007, quarterly report, by

the Office of Independent Education and Parental Choice, Florida Department of Education.

11
attendance at a Georgia Public School and have had an Individualized Education Program

(IEP) written by the school. Parents who are disappointed with their child’s current 

public school’s program will have the option to send their child to a private or public 

school that best meets the needs of their child. Parents may choose to keep their child in 

their new school until they graduate or they turn 21, whichever comes first. Parents will 

be in charge of transporting their child to the new school. 

Amount of assistance: The student will receive a scholarship for the amount their public 

school received for them, or the cost of tuition and fees, whichever is less. 

Number of participants: New program for 2007-08 school year. 

Authorizing statute: Georgia Code: Title 20, Chapter2, Article 33 

Legislative history: On May 18, 2007, the Georgia Special Needs Scholarship Act was 

signed into law, making this the first voucher program in Georgia. 

Judicial history: No legal suits have been filed regarding the program. 

For more information, see: http://public.doe.k12.ga.us/sb10.aspx.

9. Illinois—Tax Credits for Education Expenses 

Program type: Tax credits to parents for education expenses

Description: Parents of students in qualified schools may receive Illinois tax credits for 

qualified education expenses. Qualified expenses are the amounts paid in excess of $250 

for tuition, book fees, and lab fees. A qualified school is any public, private, or home 

school in Illinois that satisfies the compulsory school age requirements as described in 

§26-1 of the Illinois School Code.

Amount of assistance: The amount of credit allowed is 25 percent of the amount 

expended in excess of $250 and may not exceed $500 annually. (To reach the $500 credit 

maximum, education expenses must be at least $2,250.) 

Number of participants: In the 2004 taxable year, 207,275 taxpayers claimed credits 

worth an average of $328. 

Authorizing statute: 35 ILCS 5/201 

Legislative history: The tax credit program was enacted in 1999 and first implemented in 

the 2000 taxable year. 

Judicial history: In December 1999, an Illinois circuit court (for Franklin County) 

dismissed a lawsuit challenging the constitutionality of the program (Griffith v. Bower). 

In April 2000, another Illinois circuit court (for Sangamon County) dismissed a second, 

12
similar suit (Toney v. Bower). The Illinois Supreme Court declined to review either case, 

allowing appellate affirmations of the circuit court rulings to stand. 

For more information, see: 

http://www.revenue.state.il.us/Individuals/CreditsDeductions/educationexpensecredit.htm.

10. Iowa—Education Tax Credits 

Program type: Tax credits to parents for education-related expenses

Description: Parents of students in qualified schools may receive Iowa tax credits for 

tuition and textbook expenses. Under this program, “tuition” includes any expenses 

relating to the teaching of subjects commonly taught in Iowa public schools, and 

“textbooks” includes all books and instructional materials used in the teaching of such 

subjects, and also fees, books and materials for extracurricular activities. Expenses 

related to the teaching of religious tenets, doctrine, and worship do not qualify for a 

credit. A qualified school is any public or nonprofit private school in Iowa that is 

accredited in accordance with Iowa law (Iowa Code §256.11).

Amount of assistance: The amount of credit allowed is 25 percent of the amount 

expended up to $1,000 per dependent (i.e., up to $250 per student). 

Number of participants: In the 2005 taxable year 183,600 taxpayers claimed credits 

worth an average of $83. 

Authorizing statute: Iowa Code § 422.12 

Legislative history: The tax credit program was enacted in 1987 and initially allowed a 5 

percent credit only to families with incomes under $40,000. In 1996, the credit was 

raised to 10 percent and the household income limitation was removed. In 1998, the 

credit percentage was raised to its current level of 25 percent and there is no longer an 

income limit on eligibility.

Judicial history: In 1992, a federal district court found that the Iowa tax credit was 

constitutional in Luthens v. Blair. A group of Iowa taxpayers brought suit in federal 

district court claiming that the income tax law violated the Establishment Clause of the 

First Amendment of the U.S. Constitution that prohibits Congress and the states, through 

the Fourteenth Amendment, from making laws establishing religion. In Luthens v. Blair 

the court determined the case was substantially similar to Mueller v. Allen, in which the 

U.S. Supreme Court found in 1983 that Minnesota’s education tax deduction statute did 

not violate the Establishment Clause of the First Amendment.

For more information, see: http://www.state.ia.us/tax/1040EI/Line/03Line49.html. 

13
11. Iowa—Individual School Tuition Organization Tax Credit 

Program type: Tax credits for contributions to scholarship organizations 

Description: Taxpayers that voluntarily contribute to a qualified “school tuition 

organizations” (STOs) are eligible to receive an individual income tax credit. The 

amount of income tax credit is 65 percent of the value of the contribution. The statewide 

aggregate amount of tax credit allowed is $2.5 million in 2006-07 and $7.5 million in 

2008. 

A qualified STO must be a private nonprofit organization that supports private school 

scholarships. Students may be eligible for these scholarships if their family’s annual 

income does not exceed an amount equal to three times the most recently published 

federal poverty guidelines. Contributing taxpayers may not identify particular students as 

scholarship recipients. Participating schools must be state accredited and comply with 

federal and state civil rights laws. 

Amount of assistance: The scholarship amount is established by the STOs individually. 

Number of participants: For the 2006-07 school year, 10 scholarship organizations were 

approved by the state. 

Authorizing statue: Iowa Code § 701-42.30(422) 

Legislative history: On June 2, 2006, the School Tuition Organization Tax Credit was

enacted, creating a new tax credit program to individuals for contributions to scholarship 

organizations. The program took effect retroactively to Jan. 1, 2006. 

Judicial history: No legal suits have been filed regarding the program. 

For more information, see: http://www.state.ia.us/tax/1040EI/Line/06Line54.html#k. 

12. Maine—Town Tuitioning 

Program type: Voucher-like tuition assistance for students in small towns and rural 

areas

Description: Maine school districts that have no available public schooling—normally, 

districts in small towns and rural areas—pay to send students to approved private schools 

or to public schools in other districts. Private schools that receive students under the 

town tuitioning program must meet basic approval requirements, be nonsectarian, and be 

incorporated under Maine or federal law. Schools that enroll 60 percent or more of their 

students via the tuition assistance program are subject to the statewide assessment 

program to evaluate student academic achievement. To be eligible to attend a receiving 

private school, students must be from a family residing in a sending district and gain 

admission to the school based on its customary admissions criteria.

14
Amount of assistance: For students attending approved private elementary schools, the 

maximum tuition payment by a sending district is the state average cost per public school 

student (the “tuition rate”). For students attending approved private secondary schools, 

the maximum tuition payment is the lesser of the state average cost per public school 

student or the per-student cost of the private school (the “tuition rate”), plus a specified 

insured value factor amount for private schools located in Maine. For the 2005-06 year, 

the tuition rate for students attending private elementary schools was $6,100; for students 

in private secondary schools, the maximum tuition rate was $7,205.

Number of participants: In 2005-06, 6,017 students received tuition assistance to attend 

35 private schools.

Authorizing statutes: 20-A M.R.S. § 2951 – 20-A M.R.S. § 2955, 20-A M.R.S. § 5204, 20-

A M.R.S. § 5801, 20-A M.R.S. § 5806 

Legislative history: The tuition assistance program predates Maine statehood and began 

operation at a time when responsibility for secondary education in Maine was assumed 

primarily by private schools known as “town academies.” The tuitioning program was 

first codified under Maine’s Free High School Act of 1873, which allowed towns that

opted not to build public secondary schools to pay tuition for students’ continued 

attendance at the academies. In 1909, a more expansive law was enacted requiring such 

towns to pay tuition for students’ attendance at approved private schools. In 1981, the 

Maine Legislature decided to exclude religious schools from participation in the program. 

Judicial history: In April 1999, the Maine Supreme Court found the program’s 

exclusion of religious schools to be in keeping with the Establishment Clause of the First 

Amendment in Bagley v. Raymond School Department. In May 1999, the U.S. Court of 

Appeals for the First Circuit reached a similar decision in a separate case, Strout v. 

Albanese. The U.S. Supreme Court, in October 1999, opted not to review either decision. 

On April 26, 2006, the Maine Supreme Court ruled again to uphold the exclusion of 

religious schools from participation in the program, in Anderson v. Town of Durham. On 

Nov. 27, 2006, the U.S. Supreme Court declined to review Anderson v. Town of Durham 

case, therefore letting stand the lower court decision allowing the exclusion of religious 

schools.

13. Minnesota—K–12 Education Credit and Subtraction6 Program 

Program type: Tax credits and tax deductions to parents for educational expenses

Description: The Minnesota K–12 Education Credit and Subtraction Programs provide 

financial assistance to parents of qualifying students. To qualify, a student must attend a 

public, private, or home school. Under the credit program, parents of qualifying students 

may receive Minnesota tax credits for qualified expenses including: tutoring by qualified 

 

6 The Minnesota Department of Revenue uses the term “subtraction” rather than the term “deduction.” 

15
instructors, fees for qualified after-school programs, tuition for qualified summer camps, 

music lessons by qualified instructors, qualified nonreligious books and materials, 

purchase or rental of musical instruments for use in regular school music classes, 

qualified transportation costs, and up to $200 in computer-related expenses. Under the 

subtraction program, parents of qualifying students may receive subtractions to 

Minnesota taxable income for qualified expenses, which include those covered under the 

credit program, in addition to: private school tuition, and tuition for college courses used 

to satisfy high school graduation requirements. The subtraction program may be used for 

expenses otherwise covered by the credit program but in excess of the allowable amounts 

of credit described below. The same expenses may not be used to claim both a credit and 

a subtraction. 

Amount of assistance: The amount of credit allowed is 75 percent of the amount 

expended. For families with incomes of $33,500 or less, the maximum credit amount is 

$1,000 per qualifying student. For families with incomes above $33,500, the maximum 

credit amount is ratably reduced based on the number of students for whom a credit is

claimed. For families with one qualifying student, the credit is reduced by $1 for each $4 

of income over $33,500, meaning that the credit fully phases out for an income of 

$37,500. For families with two or more qualifying students, the credit is reduced by $2 

for each $4 of income over $33,500, meaning that the credit fully phases out for an 

income of $37,500 for families with two students, and extends by an additional $2,000 of 

income for each additional student for whom a credit is claimed. 

The maximum subtraction amount is $1,625 per student in grades K–6, and $2,500 per 

student in grades 7–12. No income restrictions apply to the subtraction program. 

Number of participants: In the 2005 taxable year, 57,114 taxpayers claimed credits 

worth an average of $269, and 226,141 taxpayers claimed subtractions worth an average 

of $1,214. 

Authorizing statutes: 

Tax Credits: Minn. Stat. § 290.0674 

Tax Deductions: Minn. Stat. § 290.01

Legislative history: Minnesota enacted the tax subtraction program in 1955, with 

amendment in 1997. The tax credit program was enacted in 1997 and first implemented 

for the 1998 taxable year. On July 13, 2005, the tax credit was expanded by removing a 

$2,000 per family limit of credit and instituting the credit phase-out, described above. 

Previously, no tax credits were available to families with incomes of $37,500 or more, 

irrespective of the number of students for whom a credit was claimed. 

Judicial history: In 1983, the U.S. Supreme Court upheld the constitutionality of the 

subtraction program in Mueller v. Allen. 

16
For more information, see:

http://www.taxes.state.mn.us/taxes/individ/other_supporting_content/inctaxfs8.shtml#P1

8_2189. 

14. Ohio—Cleveland Scholarship and Tutoring Program 

Program type: Vouchers (and tutorial grants) for students in Cleveland

Description: The Cleveland Scholarship and Tutoring Program provide scholarships to 

students in the Cleveland Municipal School District (CMSD). The scholarships are for 

attendance at a qualified private school within the district or at a public school in any 

district surrounding Cleveland.7

 Students in grades K–8 are eligible to apply for 

scholarships. Scholarship recipients may retain their scholarships through grade 12. If 

the number of new scholarships in any year is less than the number of eligible applicants, 

selection of recipients follows a lottery method. Students from low-income families have 

priority in receiving new scholarships. 

Participating private schools may not discriminate on the basis of race, religion, or ethnic 

background, and may not promote unlawful behavior or teach hatred. 

Amount of assistance: To attend a participating private school, the annual scholarship 

amount is based on the tuition of the school and the family income level of the recipient. 

Currently, the scholarship amount may not exceed the approved private school’s tuition 

or $3,450 for students in grades K–12; whichever is less. 

For recipients whose family income level is below 200 percent of the federal poverty 

level, the actual scholarship award is 90 percent of (up to) the maximum amount (i.e., a 

student from such a family and currently in grade 8 may receive a scholarship award of at 

most $3,105). For recipients whose family income is at or above 200 percent of the 

poverty level, the scholarship is 75 percent of (up to) the maximum amount. Remaining 

tuition costs are to be covered by parents; however, for recipients in grades K–8 whose 

family income level is below 200 percent of poverty, participating schools must not 

charge any tuition in excess of the remaining 10 percent of the amount, whatever that 

amount may be.

Number of participants: In the 2006-07 school year, 5,921 students received 

scholarships to attend 45 participating private schools.

Authorizing statutes: ORC Ann. 3313.97.4 – ORC Ann. 3313.99 

Legislative history: The program was enacted in 1995 and first implemented in the 1996-

97 school year. On July 1, 2003, the state legislature amended the program to allow 

recipients to retain their scholarships through grade 10 as of the 2004-05 academic year, 

 

7 The Cleveland Scholarship and Tutoring Program also allows students in CMSD public schools to obtain 

grants for tutoring services by approved providers. The number of grants for tutoring services issued in any 

year is intended to equal the number of scholarships for attendance at private schools also issued in that year. 

17
and also raised the maximum scholarship amount from $2,500 to $3,000. In June of 2005, 

the legislature expanded the grade range of students to whom new scholarships are 

available from grades K–3 to K–8, it also allowed scholarship recipients to retain their 

scholarships through grade 12 during the 2006-07 year and raised the maximum

scholarship amount available to all recipients, regardless of grade, to $3,450 for the 2006-

07 and subsequent years. 

Judicial history: In May 1999, the Ohio Supreme Court upheld the constitutionality of

the Cleveland program, but also found that it had been improperly passed by the Ohio 

legislature, in Simmons-Harris v. Goff. In June 1999, the legislature amended and 

expanded the program. In a separate lawsuit in December 1999, a U.S. district court 

found the program to violate the First Amendment (Zelman v. Simmons-Harris). In 

December 2000, the U.S. Court of Appeals for the Sixth Circuit affirmed the district 

court decision. On June 27, 2002, the U.S. Supreme Court overturned the appellate court 

decision, thereby affirming the program’s constitutionality.

For more information, see: 

http://www.ode.state.oh.us/GD/Templates/Pages/ODE/ODEDetail.aspx?page=3&TopicR

elationID=93&ContentID=5638&Content=26480. 

15. Ohio—Autism Scholarship Program

Program type: Vouchers for autistic students 

Description: Students who have been identified as autistic through their assigned school 

district are eligible for scholarships to receive special education from registered 

providers, including private schools, or alternative public providers, including schools in 

another district and other public entities. To be eligible, students must have been enrolled 

in, or be eligible to enroll in, a school in their assigned district, and must have an 

individual education program (IEP) developed by the district. Registered private 

providers must, among other requirements, implement students’ IEPs as written. 

Amount of assistance: The scholarships are capped at $20,000 per student. The 

scholarship may cover transportation costs if transportation is listed on the student’s IEP 

as a related service. For the 2006-07 school year the average scholarship was $17,500. 

Number of participants: As of May 1, 2007 (for the 2006-07 school year), 570 students 

took advantage of this scholarship and received benefits from 177 private providers, 

including 27 private schools. The state currently has no cap on the amount of students 

who may participate in this program. 

Authorizing statute: ORC Ann. 3310.41 

Legislative history: In 2003 the Ohio legislature passed the autism scholarship program 

as part of a larger bill. 

18
Judicial history: No legal suits have been filed regarding the program. 

For more information, see: 

http://www.ode.state.oh.us/GD/Templates/Pages/ODE/ODEDetail.aspx?Page=3&TopicR

elationID=967&Content=25073. 

16. Ohio—Educational Choice Scholarship Pilot Program (Ed Choice) 

Program type: Vouchers for students who attend low-performing schools 

Description: Students who attend or will be entering Ohio public schools that have been 

designated by the state as “Academic Watch” or “Academic Emergency” for two of the 

last three years are eligible to receive scholarships to attend the participating private 

school of their choice. Students currently enrolled in charter schools but who would 

otherwise be assigned to schools in these categories are also eligible. Students in the 

Cleveland Municipal School District are not eligible to participate, as the state offers a 

separate scholarship program for these students (see above). Scholarships are not 

available to students currently enrolled in a private non-public school or who are homeschooled. 

Eligible students must first be accepted at a participating private school for next school 

year before applying for an EdChoice scholarship. There is a statewide cap of 14,000 

EdChoice scholarships; if in any year there are more than 14,000 applications priority is 

first given to students renewing their scholarship and students, and then to students 

whose household income is at or below 200 percent of the federal poverty level. 

Amount of assistance: The EdChoice scholarship amount is currently set at $4,250 for 

elementary school students (grades K–8) and $5,000 for high school students or the 

private school’s tuition amount, whichever is lower. The scholarship amount will 

increase slightly each year. 

Number of participants: In the 2006-07 school year 2,785 students received scholarships 

to attend 207 private schools throughout the state. 

Authorizing statute: Ohio Revised Statues. Sections 3310.01-3310.17 

Legislative history: On June 30, 2005, the Educational Choice Scholarship Pilot Program

was signed into law as part of an omnibus education bill. On March 30, 2006, a new 

omnibus education bill was passed that expanded eligibility for scholarships under the 

program to students in schools in “academic emergency” or “academic watch” for the 

three previous years; the previous law limited eligibility to students only in schools in 

“academic emergency”, the lowest category in the school rating system. On March 30, 

2007, eligibility for scholarships was further extended to students in schools in these 

categories for two of the previous three years. 

Judicial history: No legal suits have been filed regarding the program. 

19
For more information, see: 

http://www.ode.state.oh.us/GD/Templates/Pages/ODE/ODEDetail.aspx?page=3&TopicR

elationID=92&ContentID=9341&Content=26688. 

17. Pennsylvania—Educational Improvement Tax Credit Program 

Program type: Tax credits for corporations for contributions to scholarship 

organizations

Description: Under the Educational Improvement Tax Credit Program, corporations may 

receive Pennsylvania tax credits for charitable contributions to scholarship organizations 

(SOs) or to educational improvement organizations (EIOs). The amount of credit is equal 

to 75 percent of the amount contributed and may not exceed $200,000 in any year. If a 

corporation pledges the same contribution for two consecutive tax years, the amount of 

credit rises to 90 percent of the amount contributed (with the same annual limit). The 

maximum aggregate amount of tax credits allowed in any year is $44 million, two-thirds 

of which ($29.3 million) must credit contributions to SOs. Tax credits are awarded to

corporations on a first-come, first-served basis. 

SOs provide scholarships for attendance at a participating private school or at a public 

school outside a student’s district of residence; EIOs provide grants to public schools for 

innovative educational programs. SOs award scholarships according to a household 

income limit of $50,000 plus an allowance of $10,000 for each dependent member. 

Amount of assistance: SOs establish scholarship amounts individually. To attend a 

participating private school, the annual amount may not exceed the tuition customarily 

charged by the school. Effective Dec. 1, 2005, and thereafter each September, SOs are 

required to report annually on the total and average scholarship amounts awarded to 

elementary and secondary school students.

Number of participants: In 2006-07, 39,477 students in grades pre-K through 12 

received scholarships from 300 SOs to attend participating private schools. SOs are 

required to report annually on the number of scholarships awarded to pre-K, elementary 

and secondary school students.

Authorizing statute: 24 P.S. § 20-2001-B – 24 P.S. § 20-2008-B 

Legislative history: The program was enacted in May of 2001 and was first implemented 

in 2002, and was expanded in 2003, and in 2005. In 2005, the law was changed to 

increase the cap on the aggregate amount of credits allowed from $40 million to the 

current amount of $44 million, and the reporting requirements on SOs were enacted. 

Judicial history: No legal suits have been filed regarding the program.

20
For more information, see: http://www.newpa.com/programDetail.aspx?id=62. 

18. Rhode Island—Corporate Scholarship Tax Credit Program 

Program type: Tax Credits for Corporations for contributions to scholarship 

organizations 

Description: The Rhode Island Corporate Scholarship Tax Credit Program provides tax 

credits to corporations that contribute to Scholarship Organizations (SOs). Corporations 

receive a credit valued at 75 percent of the contributions made or 90 percent if the 

second-year donation is worth at least 80 percent of the first year’s donation, with a 

maximum credit of $100,000. The state has capped the amount of credits available to $1 

million. In order for students to be eligible for these corporate scholarships they must be 

from families whose income does not exceed 250 percent of the federal poverty level.

Number of participants: This is a new program for the 2007-08 school year. 

Authorizing statute: Rhode Island General Law § Chapter 44-62 

Legislative history: The Rhode Island Corporate Scholarship Tax Credit Program was 

signed into law on June 30, 2006. The program began on Jan. 1, 2007. 

Judicial history: No legal suits have been filed regarding the program. 

For more information, see: 

http://www.allianceforschoolchoice.org/school_choice_programs.aspx?IICatID=1215&II

ID=2823. 

19. Utah—Carson Smith Scholarships for Students with Special Needs 

Program

Program type: Vouchers for students with disabilities

Description: The Carson Smith Scholarships for Students with Special Needs Program 

provides scholarships for attendance at approved private schools to students with 

qualifying disabilities. To be eligible, students must have been enrolled in Utah public 

schools and have a current Individual Education Plan (IEP), or have been enrolled in 

private schools specializing in serving students with disabilities and receive an 

assessment determining that student would qualify for special education services if 

enrolled in a public school. 

Amount of assistance: The scholarship amount is the lesser of the tuition and fees 

charged by the participating private school or $5,700 for students who would otherwise 

have received more than 180 minutes of special education services per day in a public 

21
school, or $3,420 for students who would receive less than 180 minutes of special 

education services. In 2006-07, the average scholarship amount was $4,436. 

Number of participants: In 2006-07, 330 students received scholarships to attend 26 

approved private schools.

Authorizing statute: Utah Code Ann. § 53A-1a-701 - Utah Code Ann. § 53A-1a-710

Legislative history: On March 10, 2005, this program was signed into law and then 

amended on March 15, 2006. With respect to students already attending a private school, 

the March 2006 amendment extended eligibility to students to receive scholarships in a 

school that has formerly served students with disabilities; previously, eligibility was 

restricted to students in private schools that specialize in serving such students. It also 

required that public schools notify parents of the availability of scholarships under this 

program.

Judicial history: No legal suits have been filed regarding the program.

For more information, see: http://www.schools.utah.gov/admin/specialneeds.htm. 

20. Utah—The Parents Choice in Education Act8

Program type: Vouchers for students 

Description: The Parents Choice in Education Act will provide vouchers for every 

family in Utah each voucher may be used to attend the private school of their choice. 

Voucher amounts will be based on income, ensuring that students from the lowest income

families will receive the largest amount. The voucher has no income cap for eligibility. 

Amount of assistance: Vouchers will be worth between $500 and $3,000 based on the 

family’s immediate income of the preceding year. The scholarship amounts do take into 

account the number of members in a family and are set based on the free and reducedprice-lunch program income guidelines. 

Under the income guidelines for the program, students receive the $3,000 scholarship if 

their families meet the annual income guidelines for a reduced price lunch. For example, 

in 2006-07 a family of five would qualify for the $3,000 scholarship if it had an income

at $43,290 or lower. Students from families with higher incomes will receive lower 

scholarship amounts on a sliding scale based on the percentage their family income

exceeds the level for the free and reduced-price lunch program. Students whose family 

income is 250 percent or more of the level for the free and reduced-price lunch program 

will receive the $500 scholarships. 

Authorizing statute: Utah Code Ann. § 53A-1a-802- Utah Code Ann. § 53A-1a-811

 

8 This program has not been implemented yet. 

22
Legislative history: On Feb. 12, 2007, the Parents Choice in Education Act signed into 

law. The legislature passed a second bill amending the Parents Choice in Education Act, 

which the governor signed into law on March 13, 2007.

Challenge to the law: After this bill and amendment were signed into law, groups 

opposed to this program gathered sufficient signatures in order to require a statewide 

referendum of the voters to recall or retain the voucher law. As of July 1, 2007, this 

program will not be implemented pending the referendum is held in November 2007. 

Judicial history: No legal suits have been filed regarding the program. 

21. Vermont—Town Tuitioning 

Program type: Voucher-like tuition assistance for students in small towns and rural 

areas

Description: Vermont school districts that have no available public schooling—

normally, districts in small towns and rural areas—pay to send students to approved 

private schools or to public schools in other districts. Vermont school districts that 

operate schools with spaces available to students may also send students to other public 

or private schools if petitioned to do so by parents. In general, local school districts 

determine both the availability and range of choice of schools. Private schools that 

receive students under the “town tuitioning” program must meet basic approval 

requirements and be nonsectarian. To be eligible to attend a receiving private school, 

students must be from a family residing in a sending district and gain admission to the 

school based on its customary admissions criteria.

Amount of assistance: For students attending approved private schools, sending districts 

pay the average tuition of Vermont schools or the tuition charged by the private school, 

whichever is less. For the 2005-06 year, the average tuition for Vermont elementary 

schools is $8,155; the average tuition of Vermont secondary schools is $9,000 for grades 

7–8, and $8,890 for grades 9–12. Sending districts may pay an amount higher than the 

average tuition if approved to do so by the local electorate.

Number of participants: In 2005-06, 2,913 students received tuition assistance to attend 

24 private schools.

Authorizing statutes: 16 V.S.A. § 166, 16 V.S.A. § 821 – 16 V.S.A. § 833 

Legislative history: The tuition assistance program was enacted in 1869. The 1869 law 

allowed for tuition support of students to attend private secondary schools (as well as 

public elementary and secondary schools). In 1990, the program was expanded to 

include tuition support of students to attend private elementary schools.

23
Judicial history: In 1961, participation by religious schools was ruled unconstitutional. 

In 1994, the Vermont Supreme Court ruled to re-allow participation of religious schools 

in Campbell v. Manchester Board of School Directors. In 1999, the same court rescinded 

this ruling in Chittenden Town School District v. Vermont Department of Education, on 

Dec. 13, 1999, the U.S. Supreme Court declined to hear an appeal.

22. Wisconsin—Milwaukee Parental Choice Program 

Program type: Vouchers for students from low-income families in Milwaukee

Description: The Milwaukee Parental Choice Program (MPCP) provides scholarships to 

students for attendance at participating private schools in Milwaukee. To be eligible, 

students must be from families who reside in Milwaukee and whose household income

does not exceed 175 percent of the federal poverty level. A student participating in the 

program, and whose family income increases, may remain in the program until the 

family’s income exceeds 220 of the federal poverty level. The maximum participation is 

22,500 students. 

Applications for scholarships are submitted directly to participating schools. If a 

participating school receives more applications in any year than it has seats available, 

selection of recipients follows a lottery method. Siblings of current scholarship recipients 

have priority in receiving new scholarships. 

With respect to participating private schools, the law requires schools to be accredited 

from among a list of accrediting agencies, and to administer nationally normed 

standardized tests to scholarship recipients in grades 4, 8, and 10. Participating schools 

may not require a recipient to participate in religious activities. 

Amount of assistance: For the 2006-07 academic year, the scholarship amount is the 

participating private school’s per-pupil expenditure or $6,501, whichever is less. 

Participating schools must accept the scholarship amount as full payment of tuition. 

Number of participants: In 2006-07, 17,410 students were receiving scholarships to 

attend 124 participating private schools. 

Authorizing statute: Wis. Stat. § 119.23 

Legislative history: The Milwaukee Parental Choice Program was enacted in 1990. In 

1995, it was expanded to include religious schools. In 2006, the law was changed to 

increase the number of students who may participate in the program, by increasing the 

income limit from 175 percent to 220 percent over the federal poverty level and by 

eliminating the prior-year attendance requirements (allowing students who move into the 

district to be eligible).

24
Judicial history: In June 1998, the Wisconsin Supreme Court affirmed the 

constitutionality of the program in Jackson v. Benson. In November 1998, the U.S. 

Supreme Court declined to review the case.

For more information, see: http://dpi.wi.gov/sms/choice.html.

23. District of Columbia—Opportunity Scholarship Program9

Program type: Vouchers for students from low-income families

Description: The Opportunity Scholarship Program, also known as the D.C. School 

Choice Incentive Program, provides scholarships to students for attendance at private 

schools in the District of Columbia. This program, unlike the others in this report, is not 

a state-funded program, but a federally funded program. To be eligible, students must be 

from families who reside in the District and whose household income does not exceed 

185 percent of the federal poverty level. Scholarship recipients who received their first 

scholarship in 2004-05 or 2005-06 school year may retain their scholarships if their 

household income does not exceed 300 percent of the poverty level. If the number of 

new scholarships in any year is less than the number of eligible applicants, selection of

recipients follows a lottery method. Priority is given to students attending schools 

identified for improvement, corrective action, or restructuring under the Title I of the No 

Child Left Behind Act of 2001.

With respect to scholarship recipients, participating private schools may not discriminate 

on the basis of race, color, national origin, or religion. Certain exemptions from

nondiscrimination requirements are given to participating schools with a religious 

affiliation. 

The Washington Scholarship Fund (WSF), a local nonprofit scholarship organization 

administers the Opportunity Scholarship Program under a grant from the U.S. 

Department of Education. Families apply to WSF directly for scholarships, indicating the 

participating schools of their preference. 

As mandated by law, the program is evaluated rigorously annually by an independent 

research organization. Evaluations address the academic achievement and the retention, 

dropout, and college admissions rates of scholarship recipients, in comparison both to 

students who remain in D.C. public schools and to students who applied for but did not 

receive scholarships. Evaluations also examine the following: the success of the 

program in expanding educational options for parents; the reasons why parents choose to 

have their students participate in the program; the impact of the program on students and 

public schools in the District; and the safety of the schools attended by scholarship 

students, in comparison to other D.C. schools. 

 

9 This program is authorized and funded by the federal government. 

25
Amount of assistance: The annual scholarship amount is $7,500 or the participating 

private school’s tuition, fees and any transportation costs, whichever is less.

Number of participants: In the 2006-07 school year, 1,802 students received 

scholarships to attend 58 participating private schools.

Authorizing statute: D.C. Code § 38-1851.01 -- D.C. Code § 38-1851.11 

Legislative history: On Jan. 23, 2004, President Bush signed the program into law via the 

D.C. School Choice Incentive Act of 2003, which was included in the Consolidated 

Appropriations Act of 2004. In 2006 legislation passed that raised the household income

eligibility renewal limit from 200 to 300 percent of the federal poverty level for students 

who received their first scholarship in 2004-05 and 2005-06 school years. The program 

was first implemented in the 2004-05 year and is the first of its kind at the federal level.

Judicial history: There have been no lawsuits challenging the legality or constitutionality 

of this program.

For more information, see: 

http://www.ed.gov/programs/dcchoice/index.html. 

26
Appendix 

Appendix A: Statutes of State Programs 

Following are citations of authorizing statute(s), with expanded statute descriptions and 

hyperlinks to statutory documents, for each of the respective state programs providing 

financial assistance for attendance at private elementary and secondary schools: 

1. Arizona: 

• Tax credits for individuals for contributions to scholarship organizations: 

A.R.S. § 43-1089 

Arizona Revised Statutes 

Title 43. Taxation of Income

Chapter 10. Individuals 

Article 5. Credits 

Section 1089. Credit for contributions to school tuition organization; 

definitions

http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/43/01089.htm

&Title=43&DocType=ARS 

• Tax Credits for corporations for contributions to scholarship organizations: 

A.R.S. § 43 -1183 

Arizona Revised Statutes 

Title 43. Taxation of Income

Chapter 11. Corporations 

Article 6. Credits 

Section 1183: Credit for contributions to school tuition organization; 

definitions

http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/43/01183.htm&Title

=43&DocType=ARS 

• Vouchers for students with disabilities 

A.R.S. § 15 –891 - A.R.S. § 15 –891.06 

Arizona Revised Statutes 

Title 15. Education 

Chapter 8. School Attendance 

Article 8. Arizona Scholarships for Pupils with Disabilities 

Sections 891-891.06: Arizona Scholarships for Pupils with Disabilities 

http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/15/00891.htm

&Title=15&DocType=ARS 

• Vouchers for foster care children 

A.R.S. §15-817- A.R.S. §15-817.07 

Arizona Revised Statutes 

Title 15. Education 

Chapter 8. School Attendance 

27
Article 1.2. Displaced Pupils Choice Grants 

Sections 817-817.06. Displaced Pupils Choice Grants 

http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/15/00817.htm&Title

=15&DocType=ARS 

2. Florida: 

• Vouchers for students in failing schools: 

Fla. Stat. § 1002.38 

Florida Statutes 

Title 48. K-20 Education Code 

Chapter 1002. Student and Parental Educational Rights and Choices 

Part III. Educational Choice 

Section 38. Opportunity Scholarship Program 

http://www.flsenate.gov/Statutes/index.cfm?App_mode=Display_Statute&Sea

rch_String=&URL=Ch1002/SEC38.HTM&Title=->2002->Ch1002-

>Section%2038 

• Vouchers for students with disabilities: 

Fla. Stat. § 1002.39

Florida Statutes 

Title 48. K-20 Education Code 

Chapter 1002. Student and Parental Rights and Educational Choices 

Part III. Educational Choice 

Section 39. The John M. McKay Scholarships for Students with Disabilities 

Program

http://www.flsenate.gov/Statutes/index.cfm?App_mode=Display_Statute&Sea

rch_String=&URL=Ch1002/SEC39.HTM&Title=->2002->Ch1002-

>Section%2039 

• Tax credits for corporations for contributions to scholarship organizations 

Fla. Stat. § 220.187

Florida Statutes 

Title 14. Taxation and Finance 

Chapter 220. Income Tax Code 

Part II. Tax Imposed; Apportionment 

Section 187. Credits for contributions to nonprofit scholarship-funding 

organizations 

http://www.flsenate.gov/statutes/index.cfm?mode=View%20Statutes&SubMe

nu=1&App_mode=Display_Statute&Search_String=220.187&URL=CH0220

/Sec187.HTM 

3. Georgia: 

• Vouchers for students with disabilities 

Georgia Code: § 20-2-2110 to § 20-2-2118 

Georgia Code 

Title 20. Education 

28
Chapter 2. Elementary and Secondary Education 

Article 33. Georgia Special Needs Scholarship Act 

http://public.doe.k12.ga.us/DMGetDocument.aspx/SB10%20as%20passed.pdf?p=6CC6799F8C1371F625421BDDF99DC5A1A21D46

8A4DC275323CE773062067157B&Type=D

4. Illinois: 

• Tax credits for parents for education expenses: 

35 ILCS 5/201

Illinois Compiled Statutes 

Chapter 35. Revenue 

Income Taxes 

Illinois Income Tax Act 

Article 2. Tax Imposed 

Section 201. Tax Imposed

Subsection (m). Education expense credit 

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?DocName=003500050HArt%2E

+2&ActID=577&ChapAct=35%26nbsp%3BILCS%26nbsp%3B5%2F&Chapt

erID=8&ChapterName=REVENUE&SectionID=39344&SeqStart=500&SeqE

nd=2700&ActName=Illinois+Income+Tax+Act%2E 

5. Iowa: 

• Tax credits for parents for education expenses: 

Iowa Code § 422.12

Code of Iowa 

Title X. Financial Resources 

Subtitle 1. Revenues and Financial Management 

Chapter 422. Income, Sales, Services, and Franchise Taxes 

Division II. Personal Net Income Tax 

Section 12. Deductions from computed tax 

Subsection 2. 

http://www.legis.state.ia.us/IACODE/2003/422/12.html

• Tax Credits for taxpayers who contribute to School Tuition Organizations

Iowa Code §701-42.30 (422)

Title X. Financial Resources 

Subtitle 1. Revenues and Financial Management 

Chapter 42. Adjustments to Computed Tax 

Division II. Personal Net Income Tax 

Section 30. School tuition organization tax credit 

http://nxtsearch.legis.state.ia.us/NXT/gateway.dll/moved%20code/2005%20Io

wa%20Code/1?f=templates&fn=default.htm

6. Maine: 

• Voucher-like tuition assistance for students in small towns and rural areas: 

20-A M.R.S. § 2951 – 20-A M.R.S. § 2955

29
Maine Revised Statutes 

Title 20-A. Education 

Part 2. School Organization 

Chapter 117. Private Schools 

Subchapter II. Approval for the Receipt of Public Funds by the Private 

Secondary Schools 

Sections 2951 – 2955 

http://janus.state.me.us/legis/statutes/20-a/title20-Ach117sec0.html

20-A M.R.S. § 5204

Maine Revised Statutes 

Title 20-A. Education 

Part 3. Elementary and Secondary Education 

Chapter 213. Student Eligibility 

Section 5204. Secondary students right to attend school in another 

administrative unit 

http://janus.state.me.us/legis/statutes/20-a/title20-Ach213sec0.html

20-A M.R.S. § 5801, 20-A M.R.S. § 5804, 20-A M.R.S. § 5806

Maine Revised Statutes 

Title 20-A. Education 

Part 3. Elementary and Secondary Education 

Chapter 219. Tuition 

Sections 5801, 5806

http://janus.state.me.us/legis/statutes/20-a/title20-Ach219sec0.html

7. Minnesota: 

• Tax credits and tax deductions for parents for educational expenses: 

Tax credits: 

Minn. Stat. § 290.0674

Minnesota Statutes 

Various State Taxes, Administration 

Chapter 290. Income and Franchise Taxes 

Section 0674. Minnesota Education Credit 

http://www.revisor.leg.state.mn.us/stats/290/0674.html

Tax deductions: 

Minn. Stat. § 290.01

Minnesota Statutes 

Various State Taxes, Administration 

Chapter 290. Income and Franchise Taxes 

Section 01. Definitions 

Subdivision 19b. Subtractions from Federal taxable income

http://www.revisor.leg.state.mn.us/stats/290/01.html 

30
8. Ohio: 

• Vouchers for students in Cleveland:

ORC Ann. 3313.97.4 – ORC Ann. 3313.99

Ohio Revised Code Annotated 

Title 33. Education-Libraries 

Chapter 3313. Boards of Education 

Pilot Project Scholarship Program

Sections 97.4 – 99 

http://codes.ohio.gov/orc/3313

• Vouchers for autistic students 

ORC Ann. 3310.41

Ohio Revised Code Annotated 

Title 33. Education-Libraries 

Chapter 3310: Education Choice Scholarship Program Pilot 

Section .41: Autism Scholarship Program

http://codes.ohio.gov/orc/3310

• Vouchers for students in underperforming schools 

ORC Ann. 3310.01-ORC Ann. 3310.17

Ohio Revised Code Annotated 

Title 33. Education-Libraries 

Chapter 3310: Education Choice Scholarship Program Pilot 

http://codes.ohio.gov/orc/3310

9. Pennsylvania: 

• Tax credits for corporations for contributions to scholarship organizations: 

24 P.S. § 20-2001-B – 24 P.S. § 20-2008-B

Pennsylvania Statutes 

Title 24. Education 

Chapter 1. Public School Code of 1949 

Article XX-B. Education Improvement Tax Credit 

Sections 2001-B – 2008-B 

Note: Current Pennsylvania Statutes are available online only through 

subscription services. 

10. Rhode Island 

• Tax credits for corporations for contributions to scholarship organizations

RIGL 44-62.1 – RIGL 44-62.7 

Rhode Island General Law 

Chapter 44. Taxation 

Section 62. Tax Credits to Contributions to Scholarship Organizations 

http://www.rilin.state.ri.us/Statutes/TITLE44/44-62/INDEX.HTM

31
11. Utah 

• Vouchers for students with disabilities: 

Utah Code Ann. § 53A-1a-701 - Utah Code Ann. § 53A-1a-710

Utah Code Annotated 

Title 53A. State System of Public Education 

Chapter 1a. Strategic Planning for Educational Excellence 

Part 7. Carson Smith Scholarships for Students with Special Needs 

Sections 701-710 

http://www.le.state.ut.us/~code/TITLE53A/53A02.htm 

• Vouchers for all students 

As of July 1, 2007, this law has not been included in the Utah Code. The 

following links are to the bill as enacted (signed into law on Feb. 12, 2007) and to 

the amendments (signed into law on March 13, 2007). 

http://le.utah.gov/~2007/bills/hbillamd/hb0148.htm

http://le.utah.gov/~2007/bills/hbillenr/hb0174.htm

12. Vermont: 

• Voucher-like tuition assistance for students in small towns and rural areas: 

16 V.S.A. § 166

Vermont Statutes Annotated 

Title Sixteen. Education 

Part 1. Administration 

Chapter 3. State Board of Education 

Section 166. Approved and recognized independent schools 

http://www.leg.state.vt.us/statutes/fullsection.cfm?Title=16&Chapter=003&S

ection=00166 

16 V.S.A. § 821 – 16 V.S.A. § 833

Vermont Statutes Annotated 

Title Sixteen. Education 

Part 2. Public Schools 

Chapter 21. Maintenance of Public Schools 

Sections 821 – 833 

http://www.leg.state.vt.us/statutes/sections.cfm?Title=16&Chapter=021 

13. Wisconsin: 

• Vouchers for students from low-income families in Milwaukee: 

Wis. Stat. § 119.23

Wisconsin Annotated Statutes 

Public Instruction 

Chapter 119. First Class City School System

Section 23. Milwaukee parental choice program 

32
http://folio.legis.state.wi.us/cgibin/om_isapi.dll?clientID=156619&infobase=stats.nfo&j1=119.23&jump=11

9.23&softpage=Browse_Frame_Pg 

14. District of Columbia: 

• Vouchers for students from low-income families: 

D.C. Code § 38-1851.01 -- D.C. Code § 38-1851.11 

District of Columbia Code Annotated 

Title 38. Educational Institutions

Subtitle IV-A. Public Education-School Choice 

Chapter 18-M. Grants for Tuition to Attend Primary and Secondary Schools 

in the District 

http://weblinks.westlaw.com/toc/default.aspx?Abbr=dc%2Dst&Action=Expan

dTree&AP=DC015334984&ItemKey=DC015334984&RP=%2Ftoc%2Fdefau

lt%2Ewl&Service=TOC&RS=WEBL7.07&VR=2.0&SPa=dcc1000&fragment#DC015334984

33
Appendix B: Web Resources 

Following are Web sites of organizations featuring the state programs that provide 

financial assistance for attendance at private elementary and secondary schools, as well 

as information on issues in private school choice generally. 

Alliance for School Choice 

www.allianceforschoolchoice.org 

For comprehensive information on state programs, see “School Choice Around the 

Country” 

Black Alliance for Educational Options (BAEO) 

www.baeo.org

For introductory information on types of school choice programs, see “School Choice 

Glossary” 

For information on voucher and voucher-like assistance programs by state, see “TaxSupported Scholarships (Vouchers)” 

For information on tax credit and deduction programs, see “Tuition Tax Credits and 

Deductions”

Center for Education Reform 

www.edreform.com

For news and general information on school choice programs, see “School Choice”

Education Commission of the States (ECS) 

www.ecs.org

For summary information on choice programs across the States, see “State Policies for 

School Choice Database” 

For detailed information on programs by state, see “Policy Brief: Vouchers, Tax Credits 

and Tax Deductions” 

Milton and Rose D. Friedman Foundation 

www.friedmanfoundation.org

For introductory information on school choice programs, see “About School Choice” 

For current information on programs by state, see “School Choice Programs” 

For comprehensive information on state programs, see “ABC’s of School Choice (2006-

2007 Edition)”

 

Heritage Foundation, Education 

http://www.heritage.org/Research/Education/index.cfm

For summary information on school choice programs by state, as well as school choice 

news and research see “Choices in Education” 

For links to research on school choice programs, see “School Choice Research” 

34
Heartland Institute, Education 

www.heartland.org 

For news on school choice programs, see “School Reform News” 

 

Hispanic Council for Reform and Educational Options (HCREO) 

www.hcreo.org

For summary information on school choice programs across the States, see “Educational 

Options: School Choice Programs”

Institute for Justice, School Choice 

www.ij.org/schoolchoice/index.html 

The Institute for Justice provides news and detailed information on current and past 

school choice legal cases. 

For information on school choice programs, research, and legal issues, see “School 

Choice Media Kit” 

Institute for the Transformation of Learning, Marquette University 

www.itlmuonline.com

For a summary of research on school choice programs, see “Survey of School Choice 

Research: Spring 2005” 

SchoolChoiceInfo.org 

www.schoolchoiceinfo.org 

For comprehensive information on State programs, see “School Choice Facts” 

35
The Department of Education’s mission is to promote student achievement 

and preparation for global competitiveness by fostering educational 

excellence and ensuring equal access

www.ed.gov