Applications to become a certified Educational Assistance Organization are now being accepted and must be submitted by March 11, 2022 at 5:00 p.m. You can access the application and guidelines through the EAO portal. Create an account here.
In 2021, the Missouri General Assembly passed HB349 and SB86 which established the Missouri Empowerment Scholarship Accounts Program, MOScholars. The law provides for state tax credits for contributions to nonprofit Educational Assistance Organizations (EAOs). Under the guidelines set forth in the governing statute, qualifying Missouri K-12 students may then apply for scholarships from participating EAOs to attend a K-12 institution other than their designated public school.
Frequently Asked Questions
- MOScholars was established by the Missouri General Assembly in 2021 to provide educational options to Missouri students and families. The law provides for state tax credits for contributions to approved, non-profit Education Assistance Organizations (EAOs). These EAOs use the contributions to award scholarships to eligible Missouri students.
- MOScholars does not reduce the funding received by a student’s resident school district. Instead, student scholarships are funded with private donations leveraged by state tax credits.
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Per statute, qualified students, in order of priority, are:
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Any elementary or secondary school student who is a Missouri resident and resides in an eligible county or city (a county with a charter form of government or any city with at least 30,000 residents who:
- Has a current approved "individualized education plan" (IEP) developed under the federal Individuals with Disabilities Education Act (IDEA) at the time they are originally admitted to the program. Students with Individual Service Plans (ISPs) are not eligible according to state law. OR
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Lives in a household whose total annual income does not exceed 100% of the free and reduced lunch rate; and,
- Attended a public school as a full-time student for at least one (1) semester during the previous twelve (12) months; or
- Is a child who is eligible to begin kindergarten or first grade.
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Is a member of a household whose total annual income does not exceed an amount equal to 200% of the income standard used to qualify for free and reduced lunch, and meets one of the following:
- Attended a public school as a full-time student for at least one semester during the previous twelve months; or
- Is a child who is eligible to begin kindergarten or first grade.
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If funding remains available after all students who meet these qualifications have been served, then the next category of qualified student is any student who:
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a) Is a member of a household whose total annual income does not exceed 200% of the standard used to qualify for free and reduced lunches and meets at least one of the following qualifications:
- Attended a public school as a full-time student for at least one (1) semester during the previous twelve (12) months; or
- Is a child who is eligible to begin kindergarten or first grade.
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a) Is a member of a household whose total annual income does not exceed 200% of the standard used to qualify for free and reduced lunches and meets at least one of the following qualifications:
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Any elementary or secondary school student who is a Missouri resident and resides in an eligible county or city (a county with a charter form of government or any city with at least 30,000 residents who:
- Income standards for free and reduced lunch are issued by the federal government annually.
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Qualified students may receive scholarship funding up to the state adequacy target (SAT) as defined in section 163.011 and
calculated by the department of elementary and secondary education (DESE).
For the 2022 school year, the SAT is $6,375.
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Eligible expenses include:
- Tuition, curriculum, and fees at a qualified school;
- Textbooks required by a qualified school;
- Educational therapies or services from a licensed or accredited practitioner or provider including, but not limited to, licensed or accredited paraprofessionals or educational aides;
- Tutoring services;
- Tuition or fees for a private, virtual school;
- Fees for a nationally standardized norm-referenced achievement test, advanced placement examinations, international baccalaureate examinations, or any examinations related to college or university admission;
- Fees for management of the Missouri Scholarship Account Program by firms selected by the education assistance organization;
- Services provided by a public school including, but not limited to, individual classes and extracurricular programs;
- Computer hardware or other technological devices that are used to help meet the qualified student’s educational needs and that are approved by an educational assistance organization;
- Fees for summer education programs and specialized after-school education programs;
- Transportation costs for mileage to and from a qualified school.
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Scholarships may not be used on the following:
- Consumable educational supplies included, but not limited to, pens, pencils, paper, markers
- Tuition at a private school outside the state of Missouri
- Payments or reimbursements to any person related within the third degree of consanguinity or affinity to a qualified student
- This program is under development. Once it has launched, parents and students will apply through the certified EAO that is partnering with their school of choice.
- An EAO is a nonprofit organization that, after approval by the Missouri State Treasurer’s Office, can receive qualified contributions from individuals and businesses to establish MOScholars scholarship accounts for qualified Missouri students.
- Applications to become a certified Educational Assistance Organization are now being accepted and must be submitted by March 11, 2022 at 5:00 p.m. You can access the application and guidelines through the EAO portal. Create an account here.
- Please contact moscholars@treasurer.mo.gov for more information about the certification process.
- For 2022, $25 million in MOScholars tax credits are available.
Eligible donors to the MOScholars program include any of the following that files a Missouri income tax return and is not a dependent of any other taxpayer:
- An individual subject to state income tax;
- An individual, firm, partner in a firm, corporation or shareholder in an S-Corp doing business in the state and subject to state income tax; and,
- An express company that pays an annual tax on its gross receipts in Missouri under chapter 153.
- This program is still under development. Once launched, EAOs may begin accepting donations.
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Eligible contributions are monetary donations of $500 or more, including:
- Checks drawn on a US banking institution
- Money orders
- Payroll deductions
- Electronic funds transfers
- The tax credit is equal to 100% of an eligible donation, not to exceed 50% of the donor’s state tax liability for the tax year the credit is first claimed.
- MOScholars tax credits may be carried forward for four (4) subsequent tax years.
- The tax credit is not sellable, transferrable, or refundable.
