South Dakota
Opted in on November 14, 2025
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Larry Rhoden
Governor , R
“Regardless of where they receive their education, my goal as governor is to support innovation, not to stand in the way.”
Governor Larry Rhoden, November 14, 2025 (South Dakota Searchlight)
FSTC Status in South Dakota
Governor Larry Rhoden announced South Dakota's participation on November 14, 2025, at Saint Joseph Academy in Sioux Falls.
Great news!
South Dakota has opted in to the Federal Scholarship Tax Credit (FSTC).
Governor's announcement at Saint Joseph Academy in Sioux Falls.
FSTC Readiness Checklist for South Dakota Schools
South Dakota has opted in to the FSTC. Use this 7-step checklist to prepare your school for participation.
Confirm Eligibility
Verify your school is an eligible K-12 institution (private, religious, or homeschool cooperative) under FSTC program rules.
Identify SGOs
Research which Scholarship Granting Organizations operate in South Dakota. Contact them to understand application processes and timelines.
Estimate Family Eligibility
Use the FSTC Income Eligibility Calculator to estimate how many of your families fall within the 300% median income threshold.
Open CalculatorPrepare Documentation
Gather documentation of qualifying educational expenses: tuition, fees, tutoring, curriculum materials, and educational therapy costs.
Designate a Coordinator
Assign an FSTC coordinator to manage scholarship applications, SGO partnerships, and family communications.
Develop Communication Plan
Create materials to inform families about FSTC eligibility, the application process, and covered expenses. Plan for information sessions and one-on-one support.
Build SGO Relationships
Establish relationships with at least one SGO before the application window opens. Understand their requirements, reporting expectations, and disbursement timelines.
Recent News
On June 8, 2026, the IRS announced in release IR-2026-76 that 27 states, including South Dakota, had elected to participate in the new federal scholarship tax credit program created by the One Big Beautiful Bill, confirming Governor Larry Rhoden's opt-in. States opt in by filing IRS Form 15714, and beginning January 1, 2027 donors may claim a federal credit of up to $1,700 for contributions to qualified scholarship granting organizations.
· Internal Revenue Service (IR-2026-76)
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