SSO Frequently Asked Questions

A Student Scholarship Organization (SSO) is a Montana nonprofit approved by the Montana Department of Revenue to receive tax-credit-eligible contributions and award scholarships to K–12 Montana students attending qualified education providers

Annual contribution limits under Montana law are:

•  Individuals and pass-through entities: up to $200,000
• Married couples filing jointly: up to $400,000
• Corporations: up to $200,000

Every dollar supports scholarships for Montana K–12 students to attend qualified education providers, including Big Sky Community School.

Scholarship funds are used exclusively for student tuition. These scholarships help expand access to rigorous academics, individualized learning, and experiential opportunities for students and families in Big Sky.

Scholarship awards are determined by the Student Scholarship Organization (SSO) through a structured review process, in accordance with Montana law. Families select the qualified education provider (QEP) that best fits their student. 

The SSO uses Clarity, an independent financial aid platform, as one of several tools to inform award decisions. Award amounts are subject to an annual cap tied to the average per-pupil expenditure as published by the Montana Office of Public Instruction (OPI).

Contributions to the SSO qualify for a dollar-for-dollar Montana state income tax credit, not a charitable deduction.

Because the contribution generates a state income tax credit, the IRS generally does not allow the same amount to also be claimed as a federal charitable deduction. Your tax advisor can confirm how this applies to your individual situation.

Example: If you contribute $10,000 to the BSCS SSO and owe $10,000 in Montana income tax, your state tax bill is reduced to $0.

The Montana SSO tax credit is nonrefundable, meaning it can reduce your tax liability but does not generate a refund. However, unused credits may be carried forward for up to three years.

Example: If you donate $5,000 but owe $3,000 in Montana income tax this year, you may use $3,000 now and carry forward the remaining $2,000 for up to three future tax years. Any unused portion expires after three years.

No. You do not need to be a Montana resident. You only need to have Montana income tax liability.

Yes, please do! Let's use these programs to keep our tax dollars local and raise the bar for all Big Sky students. Big Sky School District has already secured pledges for their maximum capacity of $634,000 available for 2026.

Under Montana’s Tax Credits for Qualified Education Contributions, there are two separate education tax credit programs, each subject to a $7.2 million statewide annual cap. One program is the SSO program, which provides tax credits for contributions that fund scholarships for K–12 students attending qualified education providers, such as Big Sky Community School. The second program applies to public schools and is known as the Innovative Educational Program Tax Credit. This program allows taxpayers to receive a dollar-for-dollar Montana state income tax credit for contributions that support approved innovative educational programs within public school districts.

While both programs operate under the same statutory framework and share the same statewide cap structure, they function independently. Public school districts are subject to school-specific limits on how much funding they may receive or use through the Innovative Educational Program Tax Credit. The BSCS Student Scholarship Organization may accept contributions to support local student scholarships up to the full $7.2 million statewide cap.

Contributing under one program does not limit or preclude your ability to contribute under the other, and many donors choose to participate in both programs in the same tax year.

No. Montana law requires that SSO scholarships be awarded by the SSO and may not be directed by donors to specific students or schools.

If you don’t find an answer to your question here, please contact us at info@bigskycommunityschool.org. For questions specific to your tax situation, we encourage you to consult your tax advisor.