Louisiana

Tuition Donation Credit Program

  • Tax-Credit Scholarship
  • Enacted 2012
  • Launched 2012

Louisiana’s Tuition Donation Credit Program provides dollar-for-dollar tax credits to donors providing contributions to School Tuition Organizations (STOs), nonprofits that provide scholarships to students from low-income households for tuition to attend nonpublic schools in Louisiana.

We do not administer this program.

Eligibility Test Apply

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  • 3,316

    Students Participating (2022–2023) 

  • 53%

    of Families with Children Income-eligible Statewide

  • 5

    Scholarship Organizations (2022–2023) 

  • 190

    Schools Participating (2022–2023)

  • $4,225

    Average Scholarship Value (2022–2023)

  • 28%

    Value as a Percentage of Public School Per-Student Spending

Louisiana’s Tuition Donation Credit Program Participation

Students Participating
School Year Ending
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Student Funding

Use of Funds 

Funds from scholarships are eligible to be used to pay tuition and fees at qualifying private schools in Louisiana. The Louisiana Board of Elementary and Secondary Education sets standards for participation in the program. Families apply for the scholarship through STOs. Scholarships are portable and may be used at any participating school that is an STO partner. Schools must use a lottery if demand exceeds capacity for the number of students meeting enrollment criteria and participating in the program. 

Funding Amount and Source 

Private donors fund this program by donating to STOs and receiving tax credits for their donation, up to certain limits. For participating students in grades K–8, scholarships can be worth up to 80% of the state average Minimum Foundation Program (MFP) funding per pupil for elementary and middle school students the previous year. For grades 9–12, scholarships can be worth up to 90% of the figure for high school students. Students may receive scholarships from more than one STO, but the total dollar amount of scholarships may still not exceed the maximum amounts above. Scholarships cannot exceed the actual amount of tuition and fees. Quarterly payment checks are issued via mail to participating schools in September, December, February, and May. Parents must restrictively endorse the check for deposit into the school’s account. Donors may not designate their donation for a specific student unless their donation benefits students with disabilities. Designations can be made for all students with disabilities, students with a specific type of disability, or a specific student with a disability. Taxpayers receive credit for the portion of their donation that an STO uses to fund student scholarships, up to 100%. STOs may use up to 5% of donations for administrative costs and donors are able to designate their contributions for this purpose, waiving eligibility for a tax credit. Credits are nonrefundable and limited to the taxpayer’s annual liability, but a three-year carry forward is provided. 

(Last updated July 15, 2024) 

Student Eligibility

To qualify for a scholarship provided for from the Tuition Donation Credit Program, students must come from families residing in Louisiana whose household income is less than 250% of the Federal Poverty Line ($78,000 for a family of four in 2024–2025). Additionally, they must either be entering kindergarten, have attended a public school in both semesters during the previous school year, or have previously received a scholarship under this program or the Louisiana Student Scholarships for Educational Excellence Program. Awards are on a first-come, first serve basis, but priority is given to students who participated in the Tuition Donation Credit or Louisiana Scholarship Program in the previous year. Families may apply for both an STO scholarship and the Louisiana Scholarship Program or the School Choice Program for Certain Students with Exceptionalities, but families may not combine other scholarships if they accept and use an STO scholarship. 

(Last updated July 15, 2024) 

EdChoice Expert Feedback

Louisiana’s tax-credit scholarship program helps thousands of low-income students access schools that are the right fit for them, but policymakers could do more to expand educational opportunity.  Eligibility for the scholarships is limited to 250 percent of the federal poverty line ($75,000 for a family of four in 2023–24). Fifty-five percent of  Louisiana students are eligible for a scholarship but approximately 1 percent of students participate in one of Louisiana’s private educational choice options (including the Louisiana Scholarship Program and the School Choice Program for Certain Students with Exceptionalities).  The average scholarship size is about $4,300, which is only about 35 percent of the average expenditure per student at Louisiana’s district schools.   To expand access to educational choice, Louisiana policymakers should increase the voucher amounts to be comparable with the per-pupil spending at district schools and expand eligibility to all students. The program could also be converted into an education savings account to ensure that all students have access to the education that’s the right fit for them, whether private school or a customized course of education.  Louisiana’s tax-credit scholarship program has some unnecessary and counterproductive regulations. For example, the program requires scholarship students in certain grades to take the state’s standardized test. Instead of mandating a single test, policymakers should allow parents and schools to choose from a variety of nationally norm-referenced tests. Policymakers should also amend the program so that it no longer interferes with schools’ admissions standards.  (Last updated December 18, 2023) 

Rules and Regulations

Program Guidelines

  • Income Limit: 250% x FPL
  • Prior Year Public School Requirement: Conditional
  • Enrollment Cap: None
  • Scholarship Cap: Approximately $4,350 (K–8) / $4,900 (9–12)
  • Testing Mandates: State test
  • Credit Value: 100%
  • Scholarship Cap: Approximately $4,350 (K–8), $4,900 (9–12)
  • Per Donor Credit Cap: None
  • Total Tax Credit Cap/Budget: None
  • Special Needs Pathway: Priority if donations earmarked for special needs

Participant and Family Guidelines

Education Provider Guidelines

  • Accreditation/Approval: State
  • Employment Standards: Background checks for all employees
  • Nondiscrimination: Federal
  • Calendar/Curriculum/Attendance: Maintain a curriculum of quality at least equal to that prescribed for public schools
  • Financial: Provide a surety bond to the scholarship organization if receiving more than $50,000 scholarships and has operated for fewer than six years
  • Miscellaneous: Must be approved by the Louisiana Board of Elementary and Secondary Education as compliant with Brumfield et al. v. Dodd et al., 425 F. Supp. 528 (E.D. La. 1976), which prohibits racial segregation and racial discrimination

Scholarship Organization Guidelines

  • Scholarship to Contribution Ratio: 95%
  • State Reporting: Annual reporting; all scholarships awarded, tuition and fees of participating schools, and information on individual contributions
  • Financial: Annual audit by CPA
  • Award Priority: Renewing students or prior year participants in the Student Scholarships for Educational Excellence Program
  • Miscellaneous: Background checks on employees and board members

(Last updated July 15, 2024) 

Governing Statutes

La. Rev. Stat. § 47:6301

(Last updated July 15, 2024)