Rhode Island Scholarship Granting 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 level (approximately $82,500 for a family of four)
• Grades K-12 at a qualified nonpublic (private or parochial) school in Rhode Island
• Rhode Island residency required

The program has straightforward eligibility — income and residency are the primary requirements. 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 business donations only to certified SGOs:

• 75% credit for a one-year commitment
• 90% credit for a two-year commitment (second-year donation must be at least 80% of the first year; otherwise the credit is reduced to 75% for both years)
• Per-business cap: $100,000 in credits per year
• Statewide cap: $1.5 million — this cap is consistently oversubscribed and has not been raised since 2013
• No carry forward — unused credits cannot be rolled to future years
• No individual taxpayer credit — this program is for business entities only (C-Corps, S-Corps, LLPs, LLCs)

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

The $1.5 million statewide cap fills quickly — in 2017, only 15 of 130 business applicants were accepted. Apply promptly on July 1.

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