Frequently Asked Questions (FAQ)

The Innovative Educational Program Tax Credit is available to individual and business taxpayers who make donations to a Montana public school district (PSD) for the purpose of providing supplemental funding for Innovative Educational Programs. Taxpayers donate directly to a public school district. The credit is equal to the donation up to $200,000 per taxpayer.

The Student Scholarship Organization Tax Credit is available to taxpayers who donate to approved Student Scholarship Organizations to provide scholarships for eligible students to attend instruction offered by a qualified education provider. Individual and business taxpayers donate directly to an approved SSO and can receive a tax credit of up to $200,000 that can be carried forward for up to three years.

Donations are made directly through the Public School District (PSD) or Student Scholarship Organization (SSO) of your choice. For a complete list of approved PSDs and SSOs visit EducationDonations.mt.gov

There is no limit to how much a donor can contribute to a PSD or SSO. However, the credit is limited to $200,000 per taxpayer.

Individuals, estates or trusts, pass-through entities, and corporations may only donate $200,000 per each tax credit. Taxpayers filing jointly may separately donate $200,000 and claim a credit of up to $400,000.

A taxpayer may donate to both a PSD and an SSO to claim both tax credits.

Once a donation is preapproved, the PSD or SSO will provide the donor with a tax credit receipt listing the amount of the tax credit and a confirmation code. Donors must include the confirmation number and receipt when claiming the tax credit on their tax return.

Individuals report the credit on the Form 2, Nonrefundable Credits Schedule. Partnerships and S corporations report the credit on Form PTE, Schedule II. Estates or Trusts report the credit on Form FID-3, page 2. Corporations report the credit on Form CIT, Schedule C.

No. The credit cannot reduce your tax liability below zero. However, the credit can be carried forward three years from the first year the credit was claimed.

No. However, any amount that exceeds the amount of credit claimed may be used as a charitable deduction.