Rhode Island Tax Credit Scholarship Program (Tax Credits for Contributions to Scholarship Organizations)

Rhode Island's Scholarship Tax Credit Program

Rhode Island's Tax Credits for Contributions to Scholarship Organizations program provides K-12 tuition assistance through certified SGOs. Enacted in 2006, the program serves approximately 430 students annually across 7 certified SGOs. Funding comes from businesses that donate and receive a tax credit of 75–90%.

Am I eligible?

Your child may qualify if:

• Family income at or below 250% of the federal poverty guidelines (for 2026, $82,500 for a household of four)
• Registered at a qualified school — a nonpublic elementary or secondary school in Rhode Island (§ 44-62-2)
• School age runs from the school's kindergarten admission age through the school year in which the student turns 21 or graduates, whichever comes first (§ 44-62-2(8))

Section 44-62-2 defines an eligible student by school registration and household income. It does not add a separate residency test. There are no separate IEP/504 income waivers, priority placement rules for students from low-rated schools, or special categories for foster care or military families.

How much can my child receive?

Scholarship amounts vary by SGO — there is no fixed per-student maximum. Each SGO determines awards based on available funding and family need.

• Average scholarship: approximately $2,100–$3,700 depending on the SGO and year
• Awards cover tuition and fees at qualifying nonpublic schools
• Scholarship funds are paid directly to the school on behalf of the student

How to apply

Each SGO manages its own application process — there is no centralized state application. Browse the SGO listings on this page, or contact your desired private school to learn which SGO it works with.

Application steps:

1. Identify a participating nonpublic school and contact the school or affiliated SGO
2. Submit a scholarship application with income documentation (≤250% FPL)
3. SGO reviews and determines the award amount
4. Funds are paid directly to the school

How the tax credit works

Rhode Island offers a tax credit for a business entity's cash contribution to a certified scholarship organization (R.I. Gen. Laws § 44-62-1 and § 44-62-3):

• 75% of the contribution unless a two-year contribution plan is in place (§ 44-62-4(c))
• 90% of each year's contribution when a two-year plan is in place (§ 44-62-4(e)). The plan is a written commitment to contribute the same amount for two consecutive tax years. If the second year is at least 80% of the first, the credit stays 90% of each year. If the second year is less than 80% of the first, both years are 75%, and the first-year difference is added back to tax.
• Per-business cap: $100,000 in a tax year (§ 44-62-3(a) and § 44-62-5(a))
• Statewide cap: $1,600,000 in a fiscal year (§ 44-62-3(b)). The 2023 amendment (P.L. 2023, ch. 79, art. 4, § 8) set this cap, effective January 1, 2024.
• No carry forward — unused credit cannot be rolled to a later year (§ 44-62-5(b))
• Business entities contribute. § 44-62-6 covers entities subject to the business corporation, public-service corporation, bank, bank-deposits, and insurance taxes, and it includes Subchapter S corporations, limited liability partnerships, and limited liability companies. The credit may be used against the taxes in § 44-62-4(d). The Division of Taxation's 2023 Summary of Legislative Changes says that includes the personal income tax, and that owners of pass-through entities generally claim their share on their personal return.

Tip: Commit to a two-year donation to receive the 90% credit instead of 75% — a significant increase for the same donation.

How to donate

Rhode Island uses an annual application and lottery system:

1. Submit an application to the RI Division of Taxation starting July 1 each year
2. If oversubscribed, a public lottery drawing is held (typically late July) to determine which businesses receive credit allocations
3. Upon approval, make your donation to your designated SGO(s) within 120 days
4. Obtain CPA certification of the contribution to receive your credit certificate
5. Claim the credit on your Rhode Island business tax return

For the fiscal year that began July 1, 2026, the Division of Taxation said $298,750 of credit was available. Applications exceeded that amount, and the drawing was held on July 21, 2026.

Note: Businesses designate which SGO(s) receive their donation but cannot designate specific students or schools.