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Ohio Scholarship Donation Credit Thumbnail

Ohio Scholarship Donation Credit

By: Lisa M. Wood, CPA, MT - Director of Tax

In 2021, Ohio enacted a tax credit for individuals and businesses who donate to a Scholarship Granting Organization (SGO).  At that time, very few organizations were certified as SGOs, however, the list of qualified organizations expanded greatly in 2022.

Taxpayers can claim a non-refundable credit for monetary donations to an eligible SGO.  

  • The credit amount is the lesser of 
    • $750 per taxpayer or
    •  the total amount donated to SGOs during the year
  • A married couple filing jointly can claim up to a $1,500 credit.  
    • To provide the proper accounting trail, each spouse must write and sign separate checks for their contributions

Eligible institutions must be certified through the Ohio Attorney General’s Office.  A list of SGOs can be found online here

Requirements to be classified as an SGO include

  • Be a nonprofit organization exempt from federal taxation under Internal Revenue Code §501(c)(3)
  • Primarily award scholarship for students to attend grades K-12
  • Prioritize awarding scholarship to low-income students

This credit is a great option for taxpayers who wish to contribute to funding primary and secondary education.  For every dollar contributed up to the $750 limit, Ohio will refund the amount of the donation.  Taxpayers who itemize can actually get an additional federal charitable contribution deduction, so they are getting more of a benefit than the amount of money they are donating.