Note: This version of section effective until 7-1-2026. See also
following version of this section, effective 7-1-2026.
Sec. 1.
(a)After June 30, 2022, a parent of an
eligible student or an emancipated eligible student may establish an
Indiana education scholarship account for the eligible student by
entering into a written agreement with the treasurer of state on a form
prepared by the treasurer of state. The treasurer of state shall establish
a date by which an application to establish an ESA account for the
upcoming school year must be submitted. However, for a school year
beginning after July 1, 2022, applications must be submitted for an
eligible student not later than September 1 for the immediately
following school year. The ESA account of an eligible student shall be
made in the n
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Note: This version of section effective until 7-1-2026. See also
following version of this section, effective 7-1-2026.
Sec. 1. (a) After June 30, 2022, a parent of an
eligible student or an emancipated eligible student may establish an
Indiana education scholarship account for the eligible student by
entering into a written agreement with the treasurer of state on a form
prepared by the treasurer of state. The treasurer of state shall establish
a date by which an application to establish an ESA account for the
upcoming school year must be submitted. However, for a school year
beginning after July 1, 2022, applications must be submitted for an
eligible student not later than September 1 for the immediately
following school year. The ESA account of an eligible student shall be
made in the name of the eligible student. The treasurer of state shall
make the agreement available on the website of the treasurer of state.
To be eligible, a parent of an eligible student or an emancipated
eligible student wishing to participate in the ESA program must agree
that:
(1) subject to subsection (i), a grant deposited in the eligible
student's ESA account under section 2 of this chapter and any
interest that may accrue in the ESA account will be used only for
the eligible student's ESA qualified expenses;
(2) if the eligible student participates in the CSA program, a grant
deposited in the eligible student's ESA account under IC 20-51.4-4.5-3 and any interest that may accrue in the ESA
account will be used only for the eligible student's ESA qualified
expenses;
(3) money in the ESA account when the ESA account is
terminated reverts to the state general fund;
(4) the parent of the eligible student or the emancipated eligible
student will use part of the money in the ESA account:
(A) for the eligible student's study in the subject of reading,
grammar, mathematics, social studies, or science; or
(B) for use in accordance with the eligible student's:
(i) individualized education program;
(ii) service plan developed under 511 IAC 7-34;
(iii) choice special education plan developed under 511 IAC
7-49; or
(iv) plan developed under Section 504 of the federal
Rehabilitation Act of 1973, 29 U.S.C. 794;
(5) the eligible student will not be enrolled in a school that
receives tuition support under IC 20-43; and
(6) the eligible student will take the statewide summative
assessment, as applicable based on the eligible student's grade
level, as provided under IC 20-32-5.1, or the assessment specified
in the eligible student's:
(A) individualized education program developed under IC 20-35;
(B) service plan developed under 511 IAC 7-34;
(C) choice special education plan developed under 511 IAC
7-49; or
(D) plan developed under Section 504 of the federal
Rehabilitation Act of 1973, 29 U.S.C. 794.
(b) A parent of an eligible student may enter into a separate
agreement under subsection (a) for each child of the parent. However,
not more than one (1) ESA account may be established for each
eligible student.
(c) The ESA account must be established under subsection (a) by a
parent of an eligible student or an emancipated eligible student for a
school year on or before a date established by the treasurer of state,
which must be at least thirty (30) days before the fall count day of
ADM established under IC 20-43-4-3. A parent of an eligible student
or an emancipated eligible student may not enter into an agreement
under this section or maintain an ESA account under this chapter if the
eligible student receives a choice scholarship under IC 20-51-4 for the
same school year. An eligible student may not receive a grant under
section 2 of this chapter if the eligible student is currently included in
a school corporation's ADM count under IC 20-43-4.
(d) Except as provided in subsections (e) and (f), an agreement
made under this section is valid for one (1) school year while the
eligible student is in kindergarten through grade 12 and may be
renewed annually. Upon graduation, or receipt of a certificate of
completion under the eligible student's individualized education
program, the eligible student's ESA account is terminated.
(e) An agreement entered into under this section terminates
automatically for an eligible student if:
(1) the eligible student no longer resides in Indiana while the
eligible student is eligible to receive grants under section 2 of this
chapter; or
(2) the ESA account is not renewed within three hundred
ninety-five (395) days after the date the ESA account was either
established or last renewed.
If an ESA account is terminated under this section, money in the
eligible student's ESA account, including any interest accrued, reverts
to the state general fund.
(f) An agreement made under this section for an eligible student
while the eligible student is in kindergarten through grade 12 may be
terminated before the end of the school year if the parent of the eligible
student or the emancipated eligible student notifies the treasurer of
state in a manner specified by the treasurer of state.
(g) A distribution made to an ESA account under section 2 of this
chapter is considered tax exempt as long as the distribution is used for
an ESA qualified expense. The amount is subtracted from the
definition of adjusted federal gross income under IC 6-3-1-3.5 to the
extent the distribution used for the ESA qualified expense is included
in the taxpayer's adjusted federal gross income under the Internal
Revenue Code.
(h) The department shall establish a student test number as
described in IC 20-19-3-9.4 for each eligible student. The treasurer of
state shall provide the department information necessary for the
department to comply with this subsection.
(i) A student described in IC 20-51.4-2-4(3)(B) may not use the
money deposited into the eligible student's ESA account for ESA
qualified expenses described in IC 20-51.4-2-9(a)(3), IC 20-51.4-2-9(a)(6), IC 20-51.4-2-9(a)(7), or IC 20-51.4-2-9(a)(9).