FAQs

Learn more about about Renaissance Scholarships, Inc. and the application process.

Frequently Asked Questions

What is Renaissance Scholarships, Inc. (RSI)?

Renaissance Scholarships, Inc. is a scholarship-granting organization whose mission is to provide high quality education opportunities to eligible students by partnering with the most academically rigorous, private K-12 schools in the state of Alabama.

Can I really redirect up to 100% of my Alabama income tax (corporate or personal) to scholarships that support education for income-eligible students in Alabama?

Yes. Since May, 2022, you may exchange up to 100% of your state tax liability for a state tax credit up to $100,000 per individual or couple. Your tax credit may also be carried forward for three years.

Corporate contributors may exchange up to 100% of their state tax liability for a tax credit with no maximum limit.

Please consult your personal tax advisor regarding the use of any tax credit to reduce your Alabama personal or corporate tax liability.

What do you mean “it doesn’t cost anything to donate?”

Tax credit donations allow a donor to give a portion of their existing tax liability to an SGO like RSI. Instead of sending 100% of an existing tax liability to the Alabama Department of Revenue (ADOR), contributors can donate up to $100,000 of their state tax liability to directly fund scholarships and send the remainder to the ADOR.

For example: If you owe $50,000 in Alabama corporate income taxes, you can send $50,000 directly to RSI to provide scholarships to eligible children.

Does my CPA or tax advisor know how to help me take advantage of a donation?

Yes. If your CPA or tax advisor has any questions about the tax credit or how to make a reservation on your behalf, please have them reach out to us.

What are the requirements of Pass-Through Entities?

The process for making contributions to a Scholarship Granting Organization (SGO) will be handled in the same manner as in previous years. However, Pass Through Entities (partnerships, S-Corporations and Disregarded Entities) that pass an Alabama Accountability Act credit through to their members must complete the NEW pre-certification process through MAT after their contribution has been verified by the SGO.

What if I pay quarterly estimated taxes?

Alabama taxpayers may now donate 100% of their estimated tax payments up to the maximum $100,000. As long as you make your payment to RSI in the same time and manner as you would the state your quarterly tax estimate, you will not be penalized. On August 3rd, the ADOR issued Revenue Procedure 2017-01 to ensure penalties do not occur.

For example: If you are required to pay estimated taxes of $5,000 per quarter, you can instead donate the entire $5,000 each quarter in support of our students.

Please consult your personal tax advisor regarding the use of any tax credit to reduce your Alabama personal or corporate tax liability.

Is there a cap on the tax credits made to Scholarship Granting Organizations?

Each year the Alabama Department of Revenue allocates $30 million in tax credits. These are available on a first-come, first-served basis. Being able to redirect your tax liability to an SGO is a great way to invest in the future of Alabama.

Go to www.myalabamataxes.gov to make a reservation to donate up to 100% of your Alabama tax liability to RSI or contact your tax professional.

Can I designate my tax-credit donation to a certain school?

It is important to note you cannot designate your tax-credit donation to a certain school. Your donation will used to provide a scholarship to a worthy student at one of our partner schools.

If I make a reservation on Dec 31st, when does my check need to arrive at RSI?

You should mail your check to RSI as soon as possible. Donations received in January for a credit reserved in the previous year generally must be received by January 10. We must confirm receipt of any donation within 30 days of the reservation.

Got questions? We’ve got answers!