Because South Dakota does not have a state income tax, a corporate tax-credit-generated scholarship program is the best school choice option for South Dakota, given the South Dakota Supreme Court’s restrictive interpretation of the state’s Religion Clauses. That Court has explicitly rejected the distinction between aiding students and aiding the schools they choose to attend. By equating the former with the latter, the Court appears to have foreclosed a voucher option. Although Article VIII, Section 20 was later enacted to authorize textbook loans to private school students, the South Dakota Supreme Court cases that prompted the amendment are still good law outside the context of textbook loan programs.
Model Legislation: Education Savings Account, Great Schools Tax Credit Program, Family Education Tax Credit Program
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