South Dakota Scholarship Granting Organizations

South Dakota's Partners in Education Tax Credit Program

South Dakota's Partners in Education Tax Credit Program provides K-12 scholarships to eligible students through an approved Scholarship Granting Organization. Established in 2016, the program served 1,783 students at 48 partner schools in the 2025-26 school year. The program was expanded in February 2026 (SB 84) to raise income eligibility and increase the maximum average scholarship.

Am I eligible?

Your child may qualify if:

• Family income is below 200% of the federal free/reduced-price lunch (FRL) income standard (approximately $118,956 for a family of four in 2025-26)
• Foster care: Students in foster care are eligible regardless of household income (since 2023)
• Grades K-12 at qualifying nonpublic or tribally controlled schools
• Residency in South Dakota is required
• Students entering kindergarten, first grade, or ninth grade — or attending a South Dakota K-12 school for the first time — are automatically eligible to enter the program

How much can my child receive?

Average scholarship approximately $2,457 (2025-26) — the statute caps the average of all scholarships at 100% of the state's share of the per-student equivalent (approximately $5,000). Individual awards may vary above or below this average.

• Amounts vary based on grade level and family income
• Some schools' tuition is fully covered; at others, parents pay the difference
• Scholarship payments cover tuition and fees only
• Checks are mailed to the school, payable to the parent (parent endorses for deposit)
• Scholarships are portable — students who transfer to another partner school can take the unused portion

Awards are granted for 3-year terms and may be renewed. High school students entering 9th grade remain eligible through graduation without reapplication.

How to apply

1. Review the program handbook on the SGO's website
2. Complete the online application through TADS (the application platform) — create an account, upload income verification documents, and pay the application fee
3. Enroll your child in a partner school

How the tax credit works

South Dakota's Partners in Education program uses an insurance premium tax credit — this is structurally different from most state SGO programs:

• 100% premium tax credit for insurance companies that contribute to the participating SGO
• Insurance companies are the only entities that receive a state tax credit for contributions
• Aggregate annual cap: $5,000,000 in total tax credits across all participating insurance companies
• South Dakota has no state income tax — there is no individual or general corporate state tax credit available

For individual donors: You can donate to the SGO as a 501(c)(3) charitable contribution, but there is no state tax credit for individual donations. The upcoming federal tax credit (starting January 2027) will provide the first avenue for individual donors to receive a tax benefit.

Program impact

The Partners in Education program has grown steadily since its 2016 launch, with an estimated capacity to serve approximately 2,500 students at current funding levels.