Student Funding

Use of Funds 

Qualifying expenses include tuition, fees, transportation, and textbooks. 

Funding Amount and Source 

The maximum scholarship amount a student may receive is $11,000 or the cost of tuition and qualified expenses, whichever is less. Tax credits are worth 100% of the value of the contributions to scholarship organizations, but they can only apply up to 75% of total state tax liability. Total credits claimed cannot exceed $12 million, meaning roughly 5,000 students can participate, or less than 1% of South Carolina’s K–12 student population. 

(Last updated July 18, 2024) 

Student Eligibility

Students are eligible to receive scholarships if a local school district has determined that they are a child with a disability who needs special education and related services under the state’s evaluation criteria. Students are also eligible to receive scholarships if a licensed speech-language pathologist, a psychiatrist, or a medical, mental health, psychoeducational, or other comparable licensed healthcare provider has diagnosed a student with an impairment within the last three years, then that student is eligible for the program. Impairments include a neurodevelopmental disorder, a substantial sensory or physical impairment (such as deafness, blindness or orthopedic disability), or some other disability or acute or chronic condition that significantly impedes the student’s ability to learn and succeed in school without specialized instructional and associated supports and services tailored to the child’s unique needs. Returning scholarship recipients are prioritized for awards. Students must attend an eligible independent (nonpublic) school. 

(Last updated July 18, 2024)

EdChoice Expert Feedback

South Carolina’s tax-credit scholarship program for students with special needs helps over a thousand student 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 students with special needs whose needs cannot be met by the child’s assigned school. About one in eight of South Carolina students are eligible to receive a scholarship via this program. Statewide, less than one percent of students participate in one of South Carolina’s private educational choice options (including the Refundable Educational Credit for Exceptional Needs Children). The average scholarship size is about $3,600, which is only about 30% of the average expenditure per student at South Carolina’s district schools, though the maximum scholarship values are significantly higher ($11,000). Tax credits are worth 100 percent of the value of the contributions to scholarship organizations, but only $12 million in tax credits are available annually, which is equivalent to only 0.12 percent of South Carolina’s total K-12 revenue. To expand access to educational choice, South Carolina policymakers should significantly increase the amount of available tax credits 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. South Carolina’s scholarship program generally avoids unnecessary and counterproductive regulations. (Last updated December 14, 2023) 

Rules and Regulations

Program Guidelines

• Income Limit: None
• Prior Year Public School Requirement: None
• Enrollment Cap: None
• Scholarship Cap: $11,000
• Testing Mandates: State test or nationally norm-referenced tests
• Credit Value: 100%
• Per Donor Credit Cap: 75% tax liability
• Total Tax Credit Cap/Budget Cap: $12 million
• Special Needs Pathway: Pathway

Participant and Family Guidelines

• Click Here for the Program Administrator’s Parent Handbook
• Education Requirements: Academic program must align with diagnosis
• Parent Supplemented Funds/Scholarships: Allowed
• Miscellaneous: N/A

Education Provider Guidelines

• Accreditation/Approval: State or regional
• Employment Standards: N/A
• Nondiscrimination: State and federal
• Calendar/Curriculum/Attendance: Comply with compulsory attendance requirements
• Financial: Audit
• Miscellaneous: N/A

Scholarship Organization Guidelines

• Scholarship to Contribution Ratio: Use at least 95% of contributions for scholarships
• State Reporting: Annual
• Financial: Conduct financial audits performed by a certified public accountant
• Award Priority: Renewing students
• Miscellaneous:
  • Serve more than one school
  • May not receive an appropriation of public funds
  • Operate as a public charity administered by volunteer directors appointed by the chairman of the House Ways and Means Committee, the chairman of the Senate Finance Committee, and the governor

(Last updated September 27, 2024)

Governing Statutes

S.C. Code Ann. § 12-6-3790  

(Last updated July 18, 2024) 

Legal History

No legal challenges have been filed against the program.

(Last updated July 18, 2024)