Education funding in South Dakota
2 programs in South Dakota. Each links to the program’s official sources.
Federal Scholarship Tax Credit (state opt-in)
Program doesn’t say whether homeschoolers qualify From official sources October 7, 2026 Not open yet
The federal credit funds scholarships for 'qualified elementary and secondary education expenses,' which federal law ties to enrollment or attendance at a public, private, or religious school, with 'school' defined under state law. Official IRS and Treasury guidance does not yet say whether homeschool expenses qualify.
Dates and status: South Dakota is on the IRS list of states that elected to participate for 2027 (list as of September 14, 2026). Donor credits start January 1, 2027.
Partners in Education Tax Credit Program
Not open to homeschoolers From official sources October 7, 2026
No. Scholarships cover tuition and fees at an accredited South Dakota nonpublic or tribally controlled school, so homeschool (alternative instruction) expenses are not covered.
Dates and status: Insurance companies get credits for donations, capped at $5 million a year from fiscal year 2025 on. Students in kindergarten through grade 12 qualify with household income up to 200% of the free or reduced-price lunch standard, or if in foster care. Under 2026 S.B. 84 (signed by the Governor February 6, 2026), if sufficient funding is available, a student who qualifies stays income-eligible for three years (or through high school if entering high school), and after that remains eligible at up to 250% of that standard. The average scholarship from an organization may not exceed the state per-student equivalent.