education opportunity accounts

Kentucky’s first school choice program

Please check back here regularly for updates as state regulations are released and more information on how to participate becomes available.

FAMILIES

Kentucky families will soon have the opportunity to receive scholarships for their preschool through 12th grade children to have expanded educational opportunities. 

With the passage of House Bill 563 in March 2021, families across Kentucky will soon have new opportunities to choose the best school or service for their children for the first time:

  • New Open Enrollment policy will allow a student in any district to attend a school in another district beginning in the 2022-23 school year. Districts must have space available for non-resident students. Other rules and guidelines will be announced by July 2022.

  • Education Opportunity Accounts will enable Kentucky students to:

    • receive funding for educational services and expenses like tutoring, dual credit class fees, speech therapy and transportation costs

    • receive scholarships for private school tuition if student lives in a county with 90,000 or more residents

Check back here for updates on where and how to apply. Applications are likely to be available starting in fall 2021. Scholarships are likely to be available starting in January 2022.

Eligibility

Education Opportunity Accounts will be created for families with financial need. Families can have a maximum income of 175% of the federal poverty level. Families who qualify for the federal free and reduced lunch program (100% of the poverty level) will be given first priority for scholarships and must receive at least 51% of all scholarships across the state.

donors

Kentucky’s Education Opportunity Accounts program is funded through private donations from individuals, companies, and foundations.

Donations made to a state-approved Account Granting Organization (AGO) can receive a 95% credit on state taxes, up to $1 million per donor, with a maximum of $25 million per year.

Nonprofit organizations wanting to serve as Account Granting Organizations will soon be able to apply to the Kentucky Department of Revenue sometime around August or September 2021. Check back here for updates!

As soon as there are approved AGOs, donors can begin the process of making a tax credit donation. The AGO will help donors receive the state tax credit, as long as credits are still available.

Details will be on the state Department of Revenue website, and we will link to them here.

 

FAQs