Student Funding

Use of Funds

Qualifying expenses include tuition and fees.

Funding Amount and Source

Scholarships are funded by donations to Scholarship-Granting Organizations (SGOs). Businesses may receive tax credits for donations to SGOs. Those committing to donate for two consecutive years with the second year’s donation equal to or exceeding 80% of the first year’s donation may receive 90% tax credits. Otherwise, tax credits are worth 75% of donations to SGOs. Total credits claimed cannot exceed $1.6 million, meaning roughly 500 students can participate, or 1% of Rhode Island’s K–12 student population.

(Last updated July 17, 2024)

Student Eligibility

Students must have family incomes at or below 250% of the Federal Poverty Level ($78,000 for a family of four in 2024–2025).

(Last updated July 17, 2024)

EdChoice Expert Feedback

Rhode Island’s tax-credit scholarship program helps hundreds of 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). Roughly one-third of Rhode Island students are eligible for a scholarship and less than 1 percent of students statewide actually use a scholarship. The average scholarship size is about $2,900, which is only about 16 percent of the average expenditure per student at Rhode Island’s district schools. Tax credits are worth 75 percent of the value of the contributions to scholarship organizations (or 90% for two-year contribution commitments), and only $1.6 million in tax credits are available annually, which is equivalent to only 0.06 percent of Rhode Island’s total K–12 revenue. To expand access to educational choice, Rhode Island policymakers should dramatically increase the available tax credits and expand eligibility to all students (prioritizing scholarships based on need). 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. Rhode Island’s scholarship program generally avoids unnecessary and counterproductive regulations. (Last updated December 18, 2023) 

Rules and Regulations

Program Guidelines

• Income Limit: 250% x FPL
• Prior Year Public School Requirement: None
• Enrollment Cap: None
• Scholarship Cap: None
• Testing Mandates: None
• Credit Value: 75% (One-year commitments)/ 90% (Two-year commitments)
• Per-Donor Credit Cap: $100,000
• Total Tax Credit Cap: $1.6 million
• Special Needs Pathway: None

Participant and Family Guidelines

• Education Requirements: N/A
• Parent Supplemented Funds/Scholarships: Allowed
• Miscellaneous: N/A

Education Provider Guidelines

• Accreditation/Approval: State
• Employment Standards: Background checks, bachelor’s degrees for teachers, and certification for Special Ed.
• Nondiscrimination: State and federal
• Calendar/Curriculum/Attendance: State approval
• Financial: N/A
• Miscellaneous: N/A

Scholarship Organization Guidelines:

• Scholarship to Contribution Ratio: Use at least 90% of contributions for scholarships
• State Reporting: Provide annual report to the state detailing number and value of scholarships awarded, ZIP codes of recipients, and criteria used to award scholarships
• Financial: Independent Audit
• Award Priority: N/A
• Miscellaneous: N/A

(Last updated September 27, 2024)

Governing Statutes

44 R.I. Gen. Laws §§ 62-1 through 62-7 

(Last updated February 15, 2023)  

Legal History

No legal challenges have been filed against the program.

(Last updated February 15, 2023)