The Student Scholarship Organization Tax Credit is available to taxpayers who donate to an approved Student Scholarship Organization (SSO) to provide scholarships for eligible students to attend instruction offered by a qualified education provider.
Eligibility
Individual and business taxpayers who donate directly to an approved SSO can claim the Student Scholarship Organization Tax Credit. A list of approved SSOs can be found on the Education Donations Portal at EducationDonations.mt.gov.
The department must preapprove the tax credit before a taxpayer may claim it. To gain preapproval, the SSO must report the taxpayer's donation on the Education Donation Portal to reserve the taxpayer's tax credit. If there is enough aggregate credit remaining and the donor has not made a donation of more than $200,000 for purposes of the tax credit, the credit will be preapproved. The SSO will provide the taxpayer with a tax credit receipt that includes the approved amount of the tax credit and a confirmation number. This number must be reported on the donor’s tax return when claiming the credit.
Benefit
The credit is equal to the amount of the donation up to $200,000.
Credits are available on a first-come, first-served basis until the total credits claimed reaches the aggregate threshold for the year.
In 2024, the aggregate amount of the available credit increases to $5,000,000. In 2025 and beyond, if 80% of the previous year's credits are claimed, the aggregate amount will increase by 20%. If the 80% threshold is not reached, the aggregate amount remains the same. The credit's aggregate threshold will be tracked on the Education Donation Portal, which opens January 17, 2024.
Carryover
The credit is nonrefundable but may be carried forward for up to three years.
Forms
Learn more about the SSO Tax Credit in the Tax Credits for Qualified Education Contributions Guide.