What does the donor tax credit process look like?
- Initial Donation: A donor makes an initial donation to a School Tuition Organization (STO) with any applicable stipulations.
- Verification of Donation: The Louisiana Department of Education (“LDOE”) certifies the donation by verifying the amount of each taxpayer’s donation with the STO.
- Issue Donor Receipts: The LDOE issues receipts to the STOs for the amount of the donation that will be used on student scholarships. The STO will then distribute these receipts to their donors.
- Donor Claims Credit on Return: The taxpayer attaches this receipt when filing his income tax return. The taxpayer must have the receipt on or before the due date of the return in order to claim the credit for the preceding tax year.