Educational Credit for Exceptional Needs Children
The General Assembly in 2013 and in 2014 enacted a provision, Proviso 1.80. in the state budget that allows for the creation of nonprofit scholarship funding organizations. These 501(c)(3) organizations may allocate grants up to $10,000 per child for tuition, transportation, or textbook expenses for exceptional needs students attending an independent school.
The Education Credit for Exceptional Needs Children (ECENC) is separate and distinct from the enrollment of public school students with disabilities at a private school, which is governed by South Carolina State Board of Education regulation 43-243. Moreover, the ECENC explicitly forbids the "regulat[ion] of the educational program of an independent school that accept students receiving scholarship grants."
In Proviso 1.80, Section (B), provides that a person may apply with the Department of Revenue for a tax credit against corporate or individual income taxes or bank taxes for the amount of money the person contributed to a nonprofit scholarship funding organization; that the scholarship funding organization must use the contribution to provide grants for tuition, transportation, and/or textbook expenses to exceptional needs children enrolled in eligible schools; and that the person making the contribution may not designate a specific child or school as the beneficiary of the contribution.
Section (G) provides that the Education Oversight Committee determines which schools are eligible and publishes a list of approved independent schools that comply with the requirements of eligibility and accept grants for eligible students.
There is no credit for contributing to a specific school; the credit is for contributing to a scholarship funding organization.
Below are links to information to assist the general public:
Last Updated March 27, 2015