Public schools across Montana claimed $6.96 million in dollar-for-dollar tax credits for donors in just 7 minutes and 17 seconds through the state’s Innovative Educational Program.  

At the same time, student scholarship organizations claimed $7.16 million in less than six minutes. Most of that money goes to private schools.  

Tax credits are reserved by registered schools and student scholarship organizations on a first-come, first-serve basis.  Schools prepared weeks in advance by gathering donor information. At 10 a.m. Jan 21, they rushed to enter the information into an online portal for preapproval by the Montana Department of Revenue.  

“It definitely goes fast,” Somers-Lakeside Superintendent Alex Ator said.  

This year, public schools received donations from 509 individuals, totaling $5.61 million and from 77 businesses, adding up to $1.36 million.  

Nine donations totaling $236,000 were invalidated. Invalidated tax credits will be available again when the online portal reopens Oct. 1.    

LOCAL SCHOOL districts receiving donations include Kalispell Public Schools, which claimed $45,000 for its elementary district and $44,500 for the high school district. West Valley School secured $53,500 and Whitefish $43,500 for its elementary district. Columbia Falls and Evergreen School Districts secured $10,000 each.    

Ator expressed gratitude to Somers-Lakeside School District donors, who he said wish to remain anonymous, for contributing $25,000 this year.  

“We greatly appreciate them," Ator said. “Any money donated to the schools ends up in the brains of students. Anyone who wants to be a donor, we can help set them up for next year’s window in January.”  

Regionally, Polson School District claimed $44,500 for its high school and $500 for its elementary district. Troy School District claimed $19,400 for its elementary school.  

Student scholarship organizations received $4.27 million from 217 individuals. Thirty-three businesses donated $2.89 million. Three donations were invalidated, adding up to $43,340.    

ALL PARTICIPATING public schools and scholarship organizations had a funding limit of $7.2 million each. Next year, the threshold increases by 20%.    

Individuals, businesses, or estates can donate to either tax credit program. An individual can receive up to $200,000 per year in tax credits as long as it does not exceed the taxes they owe. Unused credits can be carried over for up to three years.  

In addition to the dollar-for-dollar tax credit, Columbia Falls School District Clerk Dustin Zuffelato said he thinks the appeal is that donors can choose which schools receive their money.   

“The one [donation] we had was a local store that serves the community. Instead of paying taxes to the state, you’re paying it to the school district to use the funds to serve students in their community,” Zuffelato said.  

The money is distributed by the Office of Public Instruction, which may retain up to 5% for administrative costs.  

The program was created by the Montana Legislature in 2015 to give public schools supplemental funding. The funding may be used toward college credit, career certification and work-based learning programs; technology; services and equipment for students with disabilities; and other “transformational and advanced learning opportunities” for students.  

Somers-Lakeside plans to use funds for science, technology, engineering, math and literacy projects, including computer-based programs to enhance personalized learning for students, Ator said.  

Funds can also be used for capital improvements and equipment that support the areas listed. For example, Columbia Falls High School, which is working to establish a trade academy, may use funding for an auto shop, Zuffelato said. However, he noted that the money cannot be used for general building repairs, like replacing a roof. 

Student scholarship organizations must allocate at least 90% of donations to provide scholarships to students attending a “qualified education provider,” such as a private school, which may be accredited or not.  

Some of the local student scholarship organizations receiving donations and the amounts claimed included Kalispell organizations: St. Matthew Parish Series 535 LLC, $261,500; Kalispell Montessori Center Inc., $32,840; and Woodland Montessori School Foundation in Kalispell, $32,000. In Whitefish, the Skola reserved $322,000.  

Reporter Hilary Matheson may be reached at 758-4431 or [email protected].