Student Funding

Scholarships may be used to pay for tuition; fees; textbooks; testing costs; supplemental; and online materials as well as educational therapies from licensed physicians and therapists.

Scholarship Granting Organizations (SGOs) determine scholarship values, with maximum amounts determined by a student’s family income and Individualized Education Plan (IEP) status. Students in grades 1–12 with IEPs coming from families earning up to 185 percent ($55,500) for a family of four in 2023–24) of the federal poverty level (FPL) are eligible for scholarships worth up to two-and-a-half times Utah’s weighted pupil unit ($9,522.50 in 2022–23). Students in grades 1–12 with IEPs whose families earn between 185 and 555 percent of FPL ($165,000 for a family of four in 2023–24) may receive scholarships worth up to twice the weighted pupil unit ($7,618 in 2022–23). Students in grades 1–12 with IEPs whose family income exceeds 555 percent of FPL are eligible for scholarships up to one-and-a-half times Utah’s weighted pupil unit ($5,713.50 in 2022–23).

Eligible students in grades 1–12 without IEPs and eligible kindergartners with an IEP are eligible for scholarships up to the weighted pupil unit ($3,809 in 2022–23). Kindergarten students without IEPs may receive scholarships worth up to half of Utah’s weighted pupil unit ($1,904.50 in 2022–23).

(Last updated December 14, 2023) 

Student Eligibility

Students are eligible for scholarships if they have special needs and meet one of the following categories: (a) have a current Individualized Education Plan (IEP) , (b) if they are a kindergarten student without a current IEP but have an individualized family service plan in accordance with Individuals with Disabilities Education Act (IDEA) or (c) have been determined by a multidisciplinary evaluation team to be eligible for services under IDEA. To be eligible, students must not be a public school student or a recipient of the state’s Carson Smith Special Needs Scholarship Program.

(Last updated December 14, 2023) 

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

• Income Limit: None
• Prior Semester Public School Requirement: None
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: Conditional
• Testing Mandates: None
• Credit Value: 100%
• Per Donor Credit Cap: No
• Total Tax Credit Cap: $5.9 million (escalator)
• Limited to students with special needs

SGO Requirements

• Be a state-approved 501(c)(3) nonprofit organization
• Provide a methodology on verifying student eligibility
• Administer annual reports to state board
• Submit to annual audits of the total dollar amount of donations, number and dollar amount of scholarships awarded and the percentage of first-time recipients previously enrolled in a public school
• Use at least 92 percent of contributions for scholarships
  • No more than 5 percent of revenue from program donations is to be spent on administration
  • No more than 3 percent of revenue from program donations is to be spent on marketing and fundraising costs
• Use all revenue from interest or investments for scholarships
• Prohibit employees with a criminal background risk from handling, managing or processing donations
• Ensure that scholarships can be transferred during the school year to a different qualifying school

(Last updated December 14, 2023) 

Governing Statutes

Utah Code §§ 53E-7-402 through 410; 59-7-109.1; 59-7-625; and 59-10-1041

(Last updated December 14, 2023) 

Legal History

No legal challenges have been filed against the program.

(Last updated December 14, 2023)