(INDIANAPOLIS) - Indiana will opt into a new federal tax credit program designed to support school choice scholarships, Gov. Mike Braun announced Thursday.
According to Braun's office, Indiana will participate in a federal initiative created under President Trump's One Big Beautiful Bill. The program allows taxpayers to receive federal tax credits for contributions made to K-12 scholarship-granting organizations.
Braun said the move builds on Indiana's existing school choice policies and is intended to expand access to educational options for families across the state.
"Parents are in charge of their children's education," Braun said in a statement. "As a state, we are prioritizing that through universal school choice and a state tax credit for donations made to scholarship-granting organizations, which helps make a high-quality education accessible and affordable for every Hoosier family."
Under the program, families will be able to access scholarships through approved organizations to help cover qualified educational expenses. Those expenses can include tuition and fees, tutoring, educational therapies, transportation and technology.
Beginning Jan. 1, 2027, individuals may claim a nonrefundable federal tax credit of up to $1,700 for donations to participating scholarship organizations. Any unused portion of the credit can be carried forward for up to five years.
Braun's office said several Indiana-based scholarship-granting organizations have already indicated they plan to participate in the program. Those include the Institute for Quality Education, the Sagamore Institute Scholarship for Education Choice, the Lutheran Scholarship Granting Organization of Indiana, the School Scholarship Granting Organization of Northeast Indiana and the Legacy Foundation.
Indiana Secretary of Education Katie Jenner said the federal tax credit will complement existing state efforts to expand educational opportunity.
"Every child is unique, and Indiana is home to a variety of high-quality educational options to meet those needs, regardless of a family's income or ZIP code," Jenner said. "This new federal tax credit will continue to drive investments in scholarships and expand opportunities for students across the state."
In addition to the new federal credit, Indiana already offers a 50% state tax credit for donations made to qualified scholarship-granting organizations.