Rhode Island Tax Credit Program
For Contributions to Scholarship Organizations
Through the Rhode Island Scholarship Tax Credit Program, Star
Kids Scholarship Program students benefit from a separate 501(c)(3) organization whose sole purpose is to grant scholarships to low-income Rhode Island students in our program attending private/parochial schools. The scholarship-granting organization, (SGO), for Star Kids is
Star Scholars Opportunity Program.
What is the purpose of the R.I. Scholarship Tax Credit Program?
Rhone Island businesses can receive tax credits from the state of R.I. by donating to scholarship-granting organizations such as the Star Scholars Opportunity Program that supports Star Kids. The non-profit scholarship-granting organizations (SGOs) then award scholarships to R. I. low-income students so they may attend private or parochial schools.
Which type of business may apply?
Rhode Island C-corporations, S-corporations, limited liability partnerships and limited liability corporations, and business entities operating as a pass-through entity, may apply to use the tax credit against income tax filings.
How does the tax credit work?
Eligible businesses can choose to make a one- or two-year commitment to the scholarship tax credit program. A one-year commitment results in a 75% tax credit, while a two-year commitment results in a 90% tax credit, with a maximum credit of $100,000. Donors can also claim the contribution as an itemized deduction on federal tax returns.
A Win-Win for R.I. Businesses and R.I. Children in Need
How can an eligible business participate?
Businesses must apply for qualified tax credits – up to $100K annually – through the R.I. Division of Taxation. Within 30 days of the application submittal date of July 1, or the first business day after July 1, approval or denial will be granted from the Division of Taxation.
A drawing is conducted every July to determine which of the approved businesses will receive the tax credit. Approved businesses then have 120 days to make the contribution to their selected SGO(s). The contributions must be distributed by the SGO in the same calendar year.
Participating companies who made contributions to benefit Star Kids include
Hill Realty Co., Oral Surgery & Dental Implant Center, and AMICA.
“Star Kids significantly impacted my life. It gave me opportunities I would never have had to work 10x harder for (for example–attending a college prep school set me up for college. I was always ahead of my peers because of the preparation). It also taught me gratitude and patience.”
– G., graduate
To learn more about how you can help Star Kids and can gain business tax credits through the R.I. Scholarship Tax Credit Program, contact Ken Moldow at email@example.com or
Karen Flanagan at 401-848-4187 or firstname.lastname@example.org.