Document ID: ./input/supremecourt_opinions/opinions/19pdf/18-1195_g314.pdf
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ESPINOZA v. MONTANA DEPT. OF REVENUE 

Opinion of the Court 

credit of up to $150 to any taxpayer who donates to a par-
ticipating “student scholarship organization.”  Mont. Code 
Ann.  §§15–30–3103(1),  –3111(1)  (2019).    The  scholarship
organizations then use the donations to award scholarships
to  children  for  tuition  at  a  private  school. 
§§15–30–
3102(7)(a), –3103(1)(c).1 

So far only one scholarship organization, Big Sky Schol-
arships, has participated in the program.  Big Sky focuses
on  providing  scholarships  to  families  who  face  financial
hardship or have children with disabilities.  Scholarship or-
ganizations like Big Sky must, among other requirements,
maintain an application process for awarding the scholar-
ships;  use  at  least  90%  of  all  donations  on  scholarship
awards; and comply with state reporting and monitoring re-
quirements.  §§15–30–3103(1), –3105(1), –3113(1). 

A family whose child is awarded a scholarship under the
program may use it at any “qualified education provider”—
that is, any private school that meets certain accreditation,
testing, and safety requirements.  See §15–30–3102(7).  Vir-
tually every private school in Montana qualifies.  Upon re-
ceiving  a  scholarship,  the  family  designates  its  school  of 
choice, and the scholarship organization sends the scholar-
ship funds directly to the school.  §15–30–3104(1).  Neither 
the  scholarship  organization  nor  its  donors  can  restrict 
awards  to  particular  types  of  schools.    See  §§15–30– 
3103(1)(b), –3111(1).

The Montana Legislature allotted $3 million annually to
fund the tax credits, beginning in 2016.  §15–30–3111(5)(a). 
If  the  annual  allotment  is  exhausted,  it  increases  by  10% 
the following year.  Ibid.  The program is slated to expire in 
2023.  2015 Mont. Laws p. 2186, §33. 

The Montana Legislature also directed that the program 

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1 The Legislature provided the same tax credit to taxpayers who donate 
to  public  schools  for  the  purpose  of  supporting  innovative  educational 
programs or curing technology deficiencies at such schools.  See Mont. 
Code Ann. §15–30–3110 (2019).