Frequently Asked Questions
Tuition Donation Rebate Program
The FAQs listed below apply to donations made between January 1, 2013 and December 31, 2017.
Who is eligible for a rebate for donations to this program?
Donors that have filed a Louisiana income tax return in the year for which they make a donation are eligible.
Can donors designate their donation for a specific student or group of students?
Taxpayers may not designate their donation for a specific student unless their donation benefits students with disabilities. Taxpayers may designate their donations for all students with disabilities, students with a specific type of disability, or a specific student with a disability.
Can donors designate their donation for a specific school or group of schools?
While donors may not designate their donation for a specific school, donors may coordinate with School Tuition Organizations to potentially designate their donation for a particular group of schools. Taxpayers should work with their School Tuition Organization (“STO”) to codify their donation stipulations.
How much of a donor’s TDR donation is eligible for a rebate?
Taxpayers receive rebates for the portion of their donation that STO uses to fund student scholarships at the end of each school year. Rebates do not include the portion of each donation spent on administrative costs.
How much of a donor’s donation can be used for administrative costs?
Up to 5% of donations for student scholarships may be used for administrative costs. Donors may choose to designate 100% of their donation for administrative costs instead of student scholarships; however, this donation will not be eligible for a rebate.
What does the donor tax rebate process look like?
Steps Description 1 Initial Donation A donor makes an initial donation to a School Tuition Organization (STO) with any applicable stipulations. 2 Funding Student Scholarships The STO uses at least 95% of the donation to fund student scholarships, unless the donation was designated for administrative purposes. 3 Verify End-Of-Year Scholarship Amounts The Louisiana Department of Education (“LDE”) verifies the amount of each taxpayer’s donation spent on student scholarships. 4 Issue Donor Receipts In June, the LDE issue receipts to the STOs for the amount of the donation used on student scholarships. The STO will then distribute these receipts to their donors. 5 Issue Donor Rebates The taxpayer submits this receipt and a completed rebate form to the (LDR). The LDR then issues a rebate check to the taxpayer.
How long does it take a donor to receive a rebate check from the Louisiana Department of Revenue?
In most cases, it takes anywhere from 30 to 90 days from the day the LDR receives the donor’s receipt and rebate form to the day rebate checks are issued.
Can a donor request a refund of a donation?
After one year, a taxpayer can request a refund from a School Tuition Organization for the unused amount of the taxpayer’s donation designated for scholarships at the end of the State’s fiscal year (June 30).
Will the Louisiana Department of Revenue communicate with the donor during the tax rebate process?
LDR will send a letter to the donor with their rebate check once their refund has been processed. Donors should contact the LDR if they do not receive any communications within 90 days of submitting the rebate claim form. Questions related to claim status should be directed to LDR Tax Incentives at firstname.lastname@example.org.
Who should donors contact regarding specific tax liability questions?
Donors with specific questions regarding how their donation and potential rebate impacts their tax liability should consult a tax lawyer or advisor.
Where can potential donors view official Bulletins regarding the Tuition Donation Rebate Program?
Revenue Information Bulletin 14-014, STO Rebates Claimed by Nonprofits and Other Exempt Organizations, was issued by LDR and discusses the rebate. Bulletin 134, Tuition Donation Rebate Program, is the regulations promulgated by Department of Education on the program.
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