Student Funding

Use of Funds 

Funds can be used for goods or services from a qualifying school or provider, including published tuition and fees of a qualifying school or qualifying provider; fees and instructional materials at a technical college; tutoring services; fees for after-school or summer education programs; textbooks, curricula, or other instructional materials; educational software and applications; supplies or other equipment related to an eligible student’s educational needs; computer hardware or other technological devices that are intended primarily for an eligible student’s educational needs; fees for approved exams; educational services for students with disabilities from a licensed or accredited practitioner or provider; approved contracted services provided by an Local Education Agency (LEA), including individual classes, after-school tutoring services, transportation, or fees or costs associated with participation in extracurricular activities; fees for transportation not to exceed $750 in a given school year; expenses related to extracurricular activities, field trips, educational supplements and other educational experiences; or other expenses the scholarship granting organization approves.  

Funding Amount and Source 

Award amounts are determined by a factor of the weighted pupil unit (WPU) set annually by the Utah State Legislature ($4,494 in 2024–2025). Scholarships are determined by the SGO for a full- year award to pay for the cost of one or more scholarship expenses in an amount not more than the following: (i) for K–12 students from families with a household income not exceeding 185% of the federal poverty level, the value of the weighted pupil unit multiplied by 2.5; (ii) for K–12 students from families with a household income exceeding 185% of the federal poverty level, the value of the weighted pupil unit multiplied by two; (iii) for K–12 students from families with a household income above 185% of the federal poverty level and the eligible would have received 180 minutes per day or more of special education services in a public school before transferring to a private school, the value of the weighted pupil unit multiplied by 2.5; (iv) for preschool, the value of the weighted pupil unit; and (v) for an eligible student who qualifies as a sibling residing in the same household as a participating scholarship student attending the same private school, half the value of the weighted pupil unit.  

Two funding sources are provided for the program. Businesses and individuals who pay income taxes are eligible for a 100% credit for donations. $5.94 million dollars in credits are available annually, with an escalator in place to raise the program cap as needed. Additionally, the program will receive an over $8 million appropriation from the legislature. These funds are first used to fund legacy Carson Smith students. All excess funding not allocated in the current year program will be transferred and will allow funding for the students on the waitlist. With these combined caps, roughly 1,500 students will be able to participate, or less than 1% of Utah’s K–12 student population. 

(Last updated December 10, 2024) 

Student Eligibility

Participation in the Carson Smith Opportunity Scholarship is for students who reside in the State of Utah throughout the entire school year. The student’s custodial parent or legal guardian must also be a Utah resident. The student must have a qualifying disability as defined under the federal Individual with Disabilities in Education Act (IDEA) verifiable with documentation within the prior 3 years by an individual education plan (IEP), or multidisciplinary team evaluation (MDT). The student must be eligible to participate in prekindergarten or K–12 Utah public schools.  

Home-educated students may participate in the program. A sibling that resides in the same household as an eligible student that has enrolled in, or intends to enroll in, a qualifying school or participating services provided by a qualifying provider may also participate in the program. To qualify, a sibling must enroll in the same qualifying school or services as the eligible student.  A student cannot attend a public school while participating in the program. A student cannot receive the legacy Carson Smith scholarship or the Utah Fits All scholarship in the same year. 

(Last updated December 10, 2024) 

EdChoice Expert Feedback

Utah’s tax-credit scholarship program for students with special needs has the potential to help hundreds of students access learning environments that are the right fit for them, but policymakers could do more to expand educational opportunity. Students with special needs are eligible to receive a tax-credit scholarship. About one in eight Utah students are eligible to receive a scholarship via this program. Statewide, fewer than 1 percent of students participate in one of Utah’s private educational choice options (including the Carson Smith Special Needs Scholarship Program). The maximum scholarship size is projected to be about $9,523, which is 119 percent of the average expenditure per student at Utah’s district schools. Tax credits are worth 100 percent of the value of the contributions to scholarship organizations, but only $5.9 million in tax credits are available annually, which is equivalent to only 0.09% of Utah’s total K–12 expenditures. To expand access to educational choice, Utah 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. Utah’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: Conditional
• Enrollment Cap: None
• Voucher Cap: Conditional, Administrative to donations
• Budget Cap: $13.94 million ($8 million appropriation, $5.94 million tax credit cap):
• Testing Mandates: Annual for Private School Students
• Credit Value: 100%
• Special Needs Pathway: Pathway

Participant and Family Guidelines

• Click Here for the Program Administrator’s Parent Handbook
• Education Requirements:
• Parent Supplemented Funds/Scholarships: Yes
• Miscellaneous: Notify the scholarship organization of the following if the parent’s scholarship recipient:
  • Receives scholarship money for tuition expenses
  • Does not have continuing enrollment and attendance at a qualifying school
  • Has transitioned to be a home-based student

Education Provider Guidelines

• Accreditation/Approval: Be approved by the state
• Employment Standards:
  • Employ and assign educators that have bachelor’s degrees; three years of teaching experience; or skills, knowledge or experience that qualifies them to teach in particular subjects or address particular special needs
  • Conditional background checks
  • Provide parents with the credentials for their students’ teachers
• Nondiscrimination: Comply with federal nondiscrimination requirements of 42 U.S.C. 2000d
• Calendar/Curriculum/Attendance: Administer annual assessment of a student’s academic progress and report results to the student’s parents
• Financial:
  • Submit to the state an audit and financial report completed by a certified public accountant
  • Possess adequate working capital to maintain operations for the first year
  • Disclose to parents the special education services to be provided and the cost of those services, tuition costs, and any additional fees due during the school year
• Miscellaneous: Comply with state and local health and safety codes

Scholarship Organization Guidelines

• Scholarship to Contribution Ratio: 92% (up to 5% may be spent on program administration, up to 3% on marketing and fundraising costs)
• State Reporting:
  • Name and address of scholarship granting organization
  • Total number and total dollar amount of program donations and other funding sources received in previous calendar year
  • Total number and total dollar amount of scholarships during previous state fiscal year
  • The percentage of first-time scholarship recipients who were enrolled in a public school during the previous year or who entered kindergarten or a higher grade for the first time in Utah
• Financial: CPA audit
• Priority: Low-income
• Miscellaneous: Comply with state and local health and safety codes

(Last updated December 10, 2024)

Governing Statutes

Utah Code § 53E-7-401 through 410 

(Last updated January 3, 2025) 

Legal History

No legal challenges have been filed against the program.

(Last updated January 3, 2025)