South Dakota Partners in Education (SDPE) offers tax-credit scholarships to children in South Dakota who attend a non-public school and who meet the requirements of the program. These scholarships are funded through donations. SDPE is the Scholarship Granting Organization (SGO) in South Dakota.
Individuals or businesses can donate to SDPE to fund student scholarships. Insurance companies are the only industry to receive a tax credit for contributions. To be eligible, these companies must follow certain procedures to receive and claim the premium tax credit.
By using the tax credit, insurance companies are able to direct their dollars and partner with families in creating opportunities for children to attend a non-public school that the family believes is best for their child.
How It Works
An insurance company can receive a state premium tax credit up to 100% of contributions to SDPE. The program’s total tax credit contributions allowed by law are subject to the annual cumulative tax credit limit of $3.5 million. The credit claimed cannot be applied to taxes collected for the Workers’ Compensation Advisory Council or the tax on fire insurance premiums. Specific questions on the amount of premium tax credit can be referred to the Division of Insurance.
Insurance companies who are interested in contributing are asked to submit a Tax Credit Authorization Form to South Dakota Partners in Education. SDPE coordinates the authorization with the South Dakota Division of Insurance.
Upon receiving the contribution payment, SDPE will provide you with a Division-approved tax credit receipt. There is currently a $3.5 million tax credit cap for each calendar year. Tax liability payments need to be made by December 31. Scholarships are given on a school year calendar basis. Early-year contributions help SDPE determine scholarship amounts before school starts in the fall, which in turn helps families make good decisions on their child’s behalf.
Thank you for your support of education choice in South Dakota!