The Ohio Department of Taxation reports that during the 2021 and 2022 tax season, Ohioans received tax credits totaling more than $12 million for contributions made to Scholarship Granting Organizations.
Nonprofit organizations known as Scholarship Granting Organizations (SGOs) award scholarships to students attending private schools. The tax-credit scholarship program reimburses SGO donors up to $1,500 for married couples filing jointly or up to $750 for individuals.
Ann Riddle, director of provider school outreach for School Choice Ohio, stated that the SGOs were essentially established as a way for locals or individuals to donate to scholarships and earn a tax credit on their Ohio income tax responsibility.
523 returns for the 2021 tax year claimed a tax credit of $268,616. According to the ODT, the figures escalated to $11.9 million in tax credits claimed on almost 11,000 files for the 2022 tax year.This spring, the 2023 tax return data will be made public by the state tax department.
According to Education Week, Ohio is one of 20 states with a tax-credit scholarship program.
Ohio’s 2021 state operating budget gave rise to SGOs. Although students from low-income households are given preference, each SGO has the authority to set the amount of scholarships awarded and there is no upper income limit to be eligible for one, according to EdChoice.According to EdChoice, SGOs are required to spend over half of their program service costs on student scholarships.
According to Riddle, it’s for tuition and aids families that don’t have the money to send their kids to school.
On the other hand, school choice vouchers are almost universal in Ohio. A family of four earning more than $135,000 can still qualify for at least 10% of the maximum scholarship thanks to the 2023 state budget’s expansion of school voucher eligibility to 450% of the poverty level.
According to William Phillis, executive director of the Ohio Coalition for Equity and Adequacy of School Funding, SGOs are a component of the politicians’ scheme to privatize public education in Ohio.
According to him, it’s all part of the larger plan to shut down public schools, with the exception of providing a place for kids with impairments and those living in extreme poverty. All that has to be done is to stop supporting public education.
During the first full year of nearly universal school vouchers, Ohio spent almost $1 billion on private school scholarship programs.
Riddle stated that since the Education Choice scholarship does not pay full tuition, SGOs are still required even with school vouchers.
The increase provides state funds for a $6,165 scholarship for K–8 pupils and a $8,407 award for high school students.
“For many of the schools I work with, that doesn’t cover a lot of the tuition,” Riddle added.
According to EdChoice, there are 60 SGOs for the 2024–2025 academic year, and they are certified by the Ohio Attorney General’s Office. The SGO certification procedure is done once a year.
An SGO may include a number of schools. during instance, according to Riddle, Every Child Every Family gave $1.7 million in scholarships to 637 students across 80 schools during the 2024–2025 academic year.
For its K–12 schools, some Catholic dioceses also have their own SGO.
Some schools, like the Saint Joseph Academy Scholarship Granting Organization in Cleveland or the St. Francis de Sales High School Foundation in Toledo, establish their own SGO.
The number ofSGOs certified by the AG s office has increased over the years. As of Tuesday, there were eight SGOs accredited this year, compared to seven in 2021, 33 in 2022, 63 in 2023, and 65 in 2024.
According to Riddle, it’s simply a chance for parents to have a choice, which is fantastic, and to be able to afford that choice. Because, once more, if you know that the nearby school is struggling, it’s a chance for them to have that option and some money.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.