Indiana § 20-51-4-12 - Report; student school information

§ 20-51-4-12. Report; student school information

Sec. 12. (a) Subject to subsection (b), the department shall distribute to each school corporation, for each spring semester and each fall semester, the following information:

(1) The name of each eligible school in which an eligible choice scholarship student who has legal settlement in the school corporation is enrolled.

(2) The number of eligible choice scholarship students described in subdivision (1) who are enrolled in each eligible school for the school year.

(3) The total number of students who have legal settlement in the school corporation and attend a:

(A) public school maintained by another school corporation in Indiana; or

(B) charter school located in Indiana.

(4) The name (or description, if the school does not have a name) of the public or charter school to which a student described in subdivision (3) has transferred.

(5) The number of students described in subdivision (3) who have transferred to each school described in subdivision (4).

(b) The department shall distribute the information described in subsection (a):

(1) for each spring semester, not later than December 31 of the following school year; and

(2) for each fall semester, not later than May 31 of the same school year.

(c) The department shall post the information described in subsection (a) on the department's website.

(d) Any information distributed or posted under this section may not disclose any personally identifiable information regarding a student.

As added by P.L.94-2017, SEC.1. Amended by P.L.23-2026, SEC.217.

IC 20-51.4ARTICLE 51.4. INDIANA EDUCATION SCHOLARSHIP ACCOUNT PROGRAM AND CAREER SCHOLARSHIP ACCOUNT PROGRAM

Ch. 1.Repealed Ch. 2.Definitions Ch. 3.Administration of Indiana Education Scholarship and Career Scholarship Accounts Ch. 4.ESA Program Fund and Accounts Ch. 4.5.Career Scholarship Account Program Fund and Accounts Ch. 5.ESA Participating Entities Ch. 5.5.CSA Participating Entities Ch. 6.Rulemaking

IC 20-51.4-1Chapter 1. RepealedRepealed by P.L.202-2023, SEC.23.

IC 20-51.4-2Chapter 2. Definitions

20-51.4-2-1Application of definitions 20-51.4-2-1.5"Career scholarship student" 20-51.4-2-2"CSA account" 20-51.4-2-3"CSA annual grant amount" 20-51.4-2-3.2"CSA participating entity" 20-51.4-2-3.4"CSA program" 20-51.4-2-3.6"CSA program fund" 20-51.4-2-3.8"CSA qualified expenses" 20-51.4-2-4"Eligible student" 20-51.4-2-4.3"ESA account" 20-51.4-2-4.5"ESA annual grant amount" 20-51.4-2-4.7"ESA participating entity" 20-51.4-2-5"ESA program" 20-51.4-2-6Repealed 20-51.4-2-7"ESA program fund" 20-51.4-2-8Repealed 20-51.4-2-9"ESA qualified expenses" 20-51.4-2-9.5"Modern youth apprenticeship" 20-51.4-2-9.7"Public school" 20-51.4-2-10"Qualified school" 20-51.4-2-11"Skill competency"

IC 20-51.4-2-1Application of definitions Sec. 1. The definitions in this chapter apply throughout this article.

As added by P.L.165-2021, SEC.180.

IC 20-51.4-2-1.5"Career scholarship student" Sec. 1.5. "Career scholarship student" means an individual who:

(1) has legal settlement in Indiana;

(2) is at least five (5) years of age and less than twenty-two (22) years of age on the date in the school year specified in IC 20-33-2-7; and

(3) is enrolled in grade 10, 11, or 12 in Indiana.

As added by P.L.202-2023, SEC.24.

IC 20-51.4-2-2"CSA account" Sec. 2. "CSA account" refers to a career scholarship account established by a career scholarship student's parent or an emancipated (as described in IC 20-26-11-4) career scholarship student under IC 20-51.4-4.5-1.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.25.

IC 20-51.4-2-3"CSA annual grant amount" Sec. 3. "CSA annual grant amount" refers to the annual grant amount deposited into a career scholarship student's CSA or ESA account under IC 20-51.4-4.5-3.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.26.

IC 20-51.4-2-3.2"CSA participating entity" Sec. 3.2. "CSA participating entity" refers to an individual or entity authorized by the department to participate in the CSA program under IC 20-51.4-5.5.

As added by P.L.202-2023, SEC.27. Amended by P.L.213-2025, SEC.201.

IC 20-51.4-2-3.4"CSA program" Sec. 3.4. "CSA program" refers to the career scholarship account program established by IC 20-51.4-3-1.5.

As added by P.L.202-2023, SEC.28.

IC 20-51.4-2-3.6"CSA program fund" Sec. 3.6. "CSA program fund" refers to the career scholarship account program fund established by IC 20-51.4-4.5-4.

As added by P.L.202-2023, SEC.29.

IC 20-51.4-2-3.8"CSA qualified expenses" Sec. 3.8. "CSA qualified expenses" means expenses to enroll in and attend sequences, courses, apprenticeships, or programs of study designated and approved under IC 20-51.4-4.5-6, including the following:

(1) Career coaching and navigation services.

(2) Postsecondary education and training.

(3) Subject to IC 20-51.4-4.5-6.5, transportation, equipment, and costs related to obtaining a driver's license.

(4) Certification and credentialing examinations.

(5) Any other expenses approved by the department under IC 20-51.4-4.5.

As added by P.L.202-2023, SEC.30. Amended by P.L.127-2024, SEC.2; P.L.213-2025, SEC.202.

IC 20-51.4-2-4"Eligible student" Sec. 4. "Eligible student" refers to an individual who:

(1) has legal settlement in Indiana;

(2) is at least five (5) years of age and less than twenty-two (22) years of age on October 1 of the applicable school year; and

(3) is a student:

(A) with a disability at the time the account is established who requires special education and for whom:

(i) an individualized education program;

(ii) a service plan developed under 511 IAC 7-34; or

(iii) a choice special education plan developed under 511 IAC 7-49;

has been developed; or

(B) who is a sibling of a student described in clause (A) who has had an ESA account established in the student's name under IC 20-51.4-4-1.

(4) meets the annual income qualification requirement for a choice scholarship student under IC 20-51-1.

As added by P.L.165-2021, SEC.180. Amended by P.L.127-2024, SEC.3; P.L.162-2024, SEC.28; P.L.1-2025, SEC.197; P.L.213-2025, SEC.203.

IC 20-51.4-2-4.3"ESA account" Sec. 4.3. "ESA account" refers to an Indiana education scholarship account established by an eligible student's parent or an emancipated (as described in IC 20-26-11-4) eligible student under IC 20-51.4-4-1.

As added by P.L.202-2023, SEC.31.

IC 20-51.4-2-4.5"ESA annual grant amount" Sec. 4.5. "ESA annual grant amount" refers to the annual grant amount deposited into the eligible student's ESA account under IC 20-51.4-4-2.

As added by P.L.202-2023, SEC.32.

IC 20-51.4-2-4.7"ESA participating entity" Sec. 4.7. "ESA participating entity" refers to an individual or entity authorized by the department to participate in the ESA program under IC 20-51.4-5-2.

As added by P.L.202-2023, SEC.33. Amended by P.L.213-2025, SEC.204.

IC 20-51.4-2-5"ESA program" Sec. 5. "ESA program" refers to the Indiana education scholarship account program established by IC 20-51.4-3-1.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.34.

IC 20-51.4-2-6RepealedAs added by P.L.165-2021, SEC.180. Repealed by P.L.202-2023, SEC.35.

IC 20-51.4-2-7"ESA program fund" Sec. 7. "ESA program fund" refers to the Indiana education scholarship account program fund established by IC 20-51.4-4-3.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.36.

IC 20-51.4-2-8RepealedAs added by P.L.165-2021, SEC.180. Repealed by P.L.202-2023, SEC.37.

IC 20-51.4-2-9"ESA qualified expenses" Sec. 9. (a) "ESA qualified expenses" refers to the following expenses provided by an ESA participating entity related to the education of an eligible student for which scholarship money in an ESA account may be used:

(1) Tuition and fees, which includes curricular materials, at a qualified school, public school, or other ESA participating entity.

(2) Fees for:

(A) national norm referenced or criterion referenced examinations;

(B) advanced placement examinations, Cambridge International courses, International Baccalaureate courses, or College-Level Examination Program (CLEP) examinations; or

(C) statewide assessments associated with industry recognized credentials.

(3) Educational services for an eligible student who is a student with a disability.

(4) Payments associated with the use of paraprofessional or educational aides.

(5) Services contracted for and provided by a school corporation, charter school, magnet school, or qualified school, including:

(A) individual classes;

(B) extracurricular activities or programs; or

(C) additional programs, resources, or staffing defined in the student's education plan.

(6) Occupational therapy for a student with a disability, provided in accordance with the eligible student's individualized education program developed under IC 20-35 or service plan developed under 511 IAC 7-34.

(7) Subject to IC 20-51.4-4-7, fees for transportation paid to a fee-for-service transportation provider for the eligible student to travel to and from an approved special education service provider.

(8) Tuition and fees to attend training programs and camps that have a focus on:

(A) vocational skills;

(B) academic skills;

(C) life skills;

(D) independence; or

(E) soft job skills that are character traits and interpersonal skills that characterize a person's relationships with other people.

(9) Additional services and therapies prescribed by the eligible student's treating physician in accordance with generally accepted standards of care to improve outcomes for the student in addition to any services currently being provided by the school, insurance, or the Medicaid program.

(10) Fees for the management of the ESA account, as described in IC 20-51.4-3-2(d).

(11) Expenses to enroll in and attend sequences, courses, apprenticeships, and programs of study designated and approved under IC 20-51.4-4.5-6 if the eligible student has enrolled in the CSA program.

(b) This subsection does not apply to subsection (a)(3), (a)(6), (a)(7), or (a)(8). The term includes only services that are provided in person. The term does not include any virtual or distance learning services.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.38; P.L.127-2024, SEC.4.

IC 20-51.4-2-9.5"Modern youth apprenticeship" Sec. 9.5. "Modern youth apprenticeship" means a structured, work based learning program with an aligned, competency based education and training plan agreed to by the student, school, and employer, in which:

(1) the student:

(A) is enrolled in an Indiana high school and pursuing a high school diploma; or

(B) enrolled in the program before the student received a high school diploma and is completing the requirements of the program;

(2) the student receives at least two (2) semesters of related academic instruction eligible for secondary academic credit;

(3) the student works on the job at least six hundred fifty (650) hours over a time period not to exceed two (2) academic years (or the equivalent) from enrollment in the apprenticeship;

(4) the student is paid for the work experience in the apprenticeship;

(5) the student earns postsecondary credit as part of the apprenticeship; and

(6) the apprenticeship culminates in an industry recognized credential.

As added by P.L.202-2023, SEC.39.

IC 20-51.4-2-9.7"Public school" Sec. 9.7. "Public school" refers to a school maintained by a school corporation or a charter school.

As added by P.L.202-2023, SEC.40.

IC 20-51.4-2-10"Qualified school" Sec. 10. "Qualified school" refers to a nonpublic school accredited by either the state board or a national or regional accreditation agency that is recognized by the state board:

(1) to which an eligible student is required to pay tuition to attend; and

(2) that agrees to enroll an eligible student.

As added by P.L.165-2021, SEC.180.

IC 20-51.4-2-11"Skill competency" Sec. 11. "Skill competency" means a skill that is recognized by a CSA participating entity as an essential knowledge area learned during:

(1) a course sequence;

(2) a career course;

(3) a modern youth apprenticeship;

(4) an apprenticeship or apprenticeship program (as defined in IC 20-43-8-0.3); or

(5) a program of study leading to an industry recognized credential;

that has been approved under IC 20-51.4-4.5-6.

As added by P.L.202-2023, SEC.41.

IC 20-51.4-3Chapter 3. Administration of Indiana Education Scholarship and Career Scholarship Accounts

20-51.4-3-1Indiana education scholarship account program 20-51.4-3-1.5Career scholarship account program 20-51.4-3-2Administration of the ESA program and CSA program 20-51.4-3-3Annual audit 20-51.4-3-4Annual survey 20-51.4-3-5Online services for parents 20-51.4-3-6Advice upon request relating to services; third party provider 20-51.4-3-7Repealed

IC 20-51.4-3-1Indiana education scholarship account program Sec. 1. The Indiana education scholarship account program is established to provide grants to a parent of an eligible student or an emancipated eligible student under IC 20-51.4-4 after June 30, 2022.

As added by P.L.165-2021, SEC.180.

IC 20-51.4-3-1.5Career scholarship account program Sec. 1.5. The career scholarship account program is established to provide, after June 30, 2023, grants to a parent of a career scholarship student or an emancipated career scholarship student under this article.

As added by P.L.202-2023, SEC.42.

IC 20-51.4-3-2Administration of the ESA program and CSA program Sec. 2. (a) The ESA program shall be administered by the department.

(b) The CSA program shall be administered by the department. The department may contract with one (1) or more entities under IC 5-22-6 to maintain and manage CSA accounts under IC 20-51.4-4.5.

(c) The department may contract with one (1) or more entities to maintain and manage ESA accounts established under IC 20-51.4-4-1 after issuing a request for proposal under IC 5-22-9. Each entity shall:

(1) meet qualification requirements established by the department; and

(2) comply with generally accepted accounting principles.

(d) The department shall establish reasonable fees for entities described in subsection (c) participating in the program based upon market rates.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.43; P.L.213-2025, SEC.205.

IC 20-51.4-3-3Annual audit Sec. 3. (a) The ESA program and the CSA program are subject to annual audit by an independent public accounting firm retained by the department.

(b) The department shall promptly transmit copies of each annual audit to the governor and, in an electronic format under IC 5-14-6, the general assembly. Upon request, the department shall make copies of the audit available to the public.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.44; P.L.213-2025, SEC.206.

IC 20-51.4-3-4Annual survey Sec. 4. (a) After June 30, 2023, the department shall administer an annual survey of parents of eligible students and emancipated eligible students who maintain an ESA account under IC 20-51.4-4-1. The survey must request information:

(1) regarding when the ESA account was established and the number of grants received;

(2) relating to relative satisfaction with the ESA program and the CSA program, if applicable; and

(3) regarding opinions on any topics, items, or issues that the department determines may improve the effectiveness of the ESA program or the education experience of the eligible student or the eligible student's family.

(b) After June 30, 2024, the department shall administer an annual survey of parents of career scholarship students and emancipated career scholarship students who maintain a CSA account under IC 20-51.4-4.5-1. The survey must request information:

(1) regarding when the CSA account was established and the number of grants received;

(2) relating to relative satisfaction with the CSA program; and

(3) regarding opinions on any topics, items, or issues that the department determines may improve the effectiveness of the CSA program or the education experience of the career scholarship student or the career scholarship student's family.

(c) Not later than November 1, 2023, and each November 1 thereafter, the department shall annually provide a summary of the surveys administered under subsections (a) and (b) to the governor and, in an electronic format under IC 5-14-6, the legislative council.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.45; P.L.213-2025, SEC.207.

IC 20-51.4-3-5Online services for parents Sec. 5. The department shall provide online services and capabilities including, but not limited to, the following:

(1) A method for parents to submit an application agreement described in IC 20-51.4-4-1(a) and IC 20-51.4-4.5-1.

(2) A method for an ESA participating entity to submit the intent of the ESA participating entity to participate in the ESA program.

(3) A method for a CSA participating entity to submit the intent of the CSA participating entity to participate in the CSA program.

(4) A method for parents to identify and select ESA or CSA participating entities participating in the ESA program or CSA program.

(5) A method for parents and ESA and CSA participating entities to initiate and receive payments from an eligible student's account or career scholarship student's account.

(6) A method for parents to rate the parent's experience with an ESA or CSA participating entity and the ability for other parents of eligible students or career scholarship students to see the rating.

(7) Methods that are intuitive and allow for contributions to be easily made to an eligible student's ESA account or a career scholarship student's CSA account.

(8) Resources the family of an eligible student or career scholarship student can access to learn about advocacy groups available to provide information and resources to the eligible student's or career scholarship student's family.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.46; P.L.213-2025, SEC.208.

IC 20-51.4-3-6Advice upon request relating to services; third party provider Sec. 6. (a) The department shall provide services that offer objective advice upon request to parents of an eligible student or an emancipated eligible student relating to services that can help meet the eligible student's or emancipated eligible student's particular needs.

(b) The department shall provide services that offer objective advice upon request to parents of a career scholarship student or an emancipated career scholarship student relating to services that can help meet the career scholarship student's or emancipated career scholarship student's particular needs, including the provision of any services for which the department contracts under IC 20-51.4-4.5-7(b).

(c) The department may contract with a third party provider to provide the services described in subsection (a).

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.47; P.L.213-2025, SEC.209.

IC 20-51.4-3-7RepealedAs added by P.L.165-2021, SEC.180. Amended by P.L.132-2022, SEC.3; P.L.201-2023, SEC.219; P.L.202-2023, SEC.48. Repealed by P.L.213-2025, SEC.210.

IC 20-51.4-4Chapter 4. ESA Program Fund and Accounts

20-51.4-4-1Establishment of accounts; ESA agreement; terms 20-51.4-4-2Eligibility for grant amount; termination of an account 20-51.4-4-3Indiana education scholarship account program fund; uses; administration 20-51.4-4-3.5Indiana education scholarship account administration fund; uses; administration of the program 20-51.4-4-3.6Indiana education scholarship account donation fund; purpose; administration 20-51.4-4-4Calculation of annual grant amount 20-51.4-4-5Proration of grant amount 20-51.4-4-6Notice to parent; written explanation of authorized uses 20-51.4-4-7Limitation on use of grant amount for transportation fees 20-51.4-4-8Payment of ESA qualified expenses from other sources 20-51.4-4-9Payment refunds 20-51.4-4-10Freezing of an account; notice; petition; termination 20-51.4-4-11Public school not required to provide services 20-51.4-4-12Tax treatment; qualification for other programs

IC 20-51.4-4-1Establishment of accounts; ESA agreement; terms 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 department on a form prepared by the department. The department 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 department shall make the agreement available on the website of the department. 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 department 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 department in a manner specified by the department.

(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.

(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).

As added by P.L.165-2021, SEC.180. Amended by P.L.9-2022, SEC.38; P.L.132-2022, SEC.4; P.L.201-2023, SEC.220; P.L.202-2023, SEC.49; P.L.9-2024, SEC.410; P.L.127-2024, SEC.5; P.L.150-2024, SEC.69; P.L.1-2025, SEC.198; P.L.213-2025, SEC.211.

IC 20-51.4-4-2Eligibility for grant amount; termination of an account Sec. 2. (a) An eligible student who currently maintains an ESA account is entitled to an ESA annual grant amount for each school year until the student graduates or obtains a certificate of completion under the student's individualized education program. An eligible student may not receive a grant under this section after graduating or obtaining a certificate of completion. The ESA annual grant amount shall be paid from the ESA program fund. The department shall deposit the ESA annual grant amount under this section, in quarterly deposits, into an eligible student's ESA account.

(b) Except as provided in subsection (c), at the end of the year in which an ESA account is established, the parent of an eligible student or the emancipated eligible student may roll over for use in a subsequent year a maximum of one thousand dollars ($1,000). However, for each year thereafter, the parent of the eligible student or the emancipated eligible student may roll over one thousand dollars ($1,000) plus any amount rolled over in a previous year.

(c) An eligible student's ESA account shall terminate the later of:

(1) the date the student graduates high school; or

(2) July 1 of the year in the year which the student graduates high school.

Any money, including interest that remains in the eligible student's ESA account when it terminates under this subsection reverts to the state general fund.

As added by P.L.165-2021, SEC.180. Amended by P.L.132-2022, SEC.5; P.L.202-2023, SEC.50; P.L.213-2025, SEC.212.

IC 20-51.4-4-3Indiana education scholarship account program fund; uses; administration Sec. 3. (a) The Indiana education scholarship account program fund is established for the purpose of providing grants to eligible students under the ESA program. Money appropriated to the fund may be used to provide grants under this chapter in the manner prescribed in section 2 of this chapter.

(b) The department shall administer the ESA program fund.

(c) The ESA program fund consists of the following:

(1) Appropriations by the general assembly.

(2) Interest deposited in the ESA program fund under subsection (d).

(d) The treasurer of state shall invest money in the ESA program fund not currently needed to meet the obligations of the ESA program fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the ESA program fund.

(e) Money in the ESA program fund at the end of a state fiscal year reverts to the state general fund.

As added by P.L.165-2021, SEC.180. Amended by P.L.132-2022, SEC.6; P.L.201-2023, SEC.221; P.L.202-2023, SEC.51; P.L.213-2025, SEC.213.

IC 20-51.4-4-3.5Indiana education scholarship account administration fund; uses; administration of the program Sec. 3.5. (a) The Indiana education scholarship account administration fund is established for the purpose of accepting money for the Indiana education scholarship account program to support administration of the ESA program.

(b) The department shall administer the fund.

(c) The fund consists of the following:

(1) Appropriations by the general assembly.

(2) Interest deposited in the fund under subsection (d).

(d) The treasurer of state shall invest money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.

(e) Money in the fund at the end of a state fiscal year reverts to the state general fund.

As added by P.L.132-2022, SEC.7. Amended by P.L.201-2023, SEC.222; P.L.202-2023, SEC.52; P.L.213-2025, SEC.214.

IC 20-51.4-4-3.6Indiana education scholarship account donation fund; purpose; administration Sec. 3.6. (a) The Indiana education scholarship account donation fund is established for the purpose of accepting donations for the Indiana education scholarship account program to support administration of the program.

(b) The department shall administer the fund.

(c) The fund consists of the following:

(1) Donations, gifts, and money received from any other source, including transfers from other funds or accounts.

(2) Interest deposited in the fund under subsection (d).

(d) The treasurer of state shall invest money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.

(e) Money in the fund is continuously appropriated for purposes of the fund.

(f) Money in the fund at the end of a state fiscal year does not revert to the state general fund but remains in the fund for the purposes of the fund.

As added by P.L.201-2023, SEC.223. Amended by P.L.213-2025, SEC.215.

IC 20-51.4-4-4Calculation of annual grant amount Sec. 4. (a) Subject to sections 5 and 10 of this chapter, the annual grant amount under section 2 of this chapter for an eligible student equals, subject to subsection (b), ninety percent (90%) of the amount determined in the last STEP of the following formula:

STEP ONE: Determine the school corporation in which the eligible student has legal settlement.

STEP TWO: Determine the amount of state tuition support that the school corporation identified under STEP ONE is eligible to receive under IC 20-43-6 for the state fiscal year in which the immediately preceding school year begins. The amount does not include amounts provided for special education grants under IC 20-43-7, career and technical education grants under IC 20-43-8, grants under IC 20-43-10, or an academic performance grant under IC 20-43-10.5.

STEP THREE: Determine the result of:

(A) the STEP TWO amount; divided by

(B) the current ADM (as defined in IC 20-43-1-10) for the school corporation identified under STEP ONE for the state fiscal year used in STEP TWO.

(b) An eligible student may choose to receive special education services from the school corporation required to provide the special education services to the eligible student under 511 IAC 7-34-1. However, if an eligible student described in subsection (a) chooses not to receive special education or related services from a school corporation required to provide the services to the eligible student under 511 IAC 7-34-1, the ESA annual grant amount for the eligible student shall, in addition to the amount described in subsection (a), include the amount the school corporation would receive under IC 20-43-7 for the eligible student if the eligible student attended the school corporation.

(c) The ESA annual grant amounts provided in subsection (a) shall be rounded as provided in IC 20-43-3-1(4).

As added by P.L.165-2021, SEC.180. Amended by P.L.201-2023, SEC.224; P.L.202-2023, SEC.53; P.L.9-2024, SEC.411.

IC 20-51.4-4-5Proration of grant amount Sec. 5. If an eligible student's agreement under section 1 of this chapter is in effect for less than an entire school year, the ESA annual grant amount provided under section 2 of this chapter for that school year shall be reduced on a prorated basis in a manner prescribed by the department to reflect the length of the agreement. In the event an eligible student's ESA account is terminated because the eligible student enrolls in a school that receives tuition support under IC 20-43, the balance in the ESA account at the time the ESA account is terminated shall be transferred to the school corporation or charter school in which the eligible student enrolls. In the event that special education grant funding under section 4(b) of this chapter has been deposited into the eligible student's ESA account but the eligible student subsequently begins receiving special education services from a school that receives funding under IC 20-43, the balance in the ESA account up to the amount deposited under section 4(b) of this chapter shall be transferred to the school corporation or charter school that provides the special education services to the student.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.54; P.L.213-2025, SEC.216.

IC 20-51.4-4-6Notice to parent; written explanation of authorized uses Sec. 6. Upon entering into or renewing an agreement under this chapter, the department shall provide to the parent of an eligible student or an emancipated eligible student a written explanation of the authorized uses of the money in the ESA account and the responsibilities of the parent of an eligible student or an emancipated eligible student and the department regarding an ESA account established under section 1 of this chapter.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.55; P.L.213-2025, SEC.217.

IC 20-51.4-4-7Limitation on use of grant amount for transportation fees Sec. 7. A parent of an eligible student may use not more than seven hundred fifty dollars ($750) of the ESA annual grant amount received under this chapter each school year for fees for transportation paid to a fee-for-service transportation provider for the eligible student to travel to and from an approved service provider. However, the department shall establish criteria and a process by which a parent of an eligible student may receive a waiver from the limit imposed on transportation fees under this section.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.56; P.L.213-2025, SEC.218.

IC 20-51.4-4-8Payment of ESA qualified expenses from other sources Sec. 8. This chapter does not prohibit a parent of an eligible student or an emancipated eligible student from making a payment for any ESA qualified expense from a source other than the eligible student's ESA account. The parent of an eligible student or an emancipated eligible student is responsible for the payment of any tuition required by a qualified school that is not paid from the eligible student's ESA account.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.57.

IC 20-51.4-4-9Payment refunds Sec. 9. An ESA participating entity or CSA participating entity that receives a payment for an ESA qualified expense may not refund any part of the payment directly to the parent of the eligible student or the emancipated eligible student. Any refund provided by:

(1) an ESA participating entity; or

(2) a CSA participating entity if an eligible student participates in the CSA program;

shall be deposited into the eligible student's ESA account.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.58.

IC 20-51.4-4-10Freezing of an account; notice; petition; termination Sec. 10. (a) The department shall freeze the ESA account established under section 1 of this chapter of any parent of an eligible student or an emancipated eligible student who:

(1) fails to comply with the terms of the agreement established under section 1 of this chapter;

(2) fails to comply with applicable laws or regulations; or

(3) substantially misuses funds in the ESA account.

(b) The department shall send written notice to the parent of the eligible student or the emancipated eligible student stating the reason for the freeze under subsection (a). The department may also send notice to the attorney general or the prosecuting attorney in the county in which the parent of the eligible student or the emancipated eligible student resides if the department believes a crime has been committed or a civil action relating to the ESA account is necessary.

(c) A parent of an eligible student or an emancipated eligible student whose ESA account has been frozen under subsection (a) may petition the department for redetermination of the decision under subsection (a) within thirty (30) days after the date the department sends notice to the parent of the eligible student or the emancipated eligible student under subsection (b). The petition must contain a written explanation stating why the department was incorrect in freezing the ESA account under subsection (a). If the department does not receive a timely submitted petition from a parent of an eligible student or an emancipated eligible student under this subsection, the department shall terminate the ESA account.

(d) The department shall review a petition received under subsection (c) within fifteen (15) business days of receipt of the petition and issue a redetermination letter to the parent of the eligible student or the emancipated eligible student. If the department overturns the department's initial decision under subsection (a), the department shall immediately unfreeze the ESA account. If the department affirms the decision under subsection (a), the department shall give notice of the affirmation to the parent of the eligible student or the emancipated eligible student and terminate the ESA account.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.59; P.L.213-2025, SEC.219.

IC 20-51.4-4-11Public school not required to provide services Sec. 11. Notwithstanding 511 IAC 7-34-1(d)(4), a public school is not required to make available special education and related services to an eligible student if the eligible student receives funds under section 2 of this chapter and the special education services are provided to the eligible student by the ESA participating entity. This section may not be construed as a restriction or limitation on any of the rights, benefits, and protections granted to an individual under the federal Individuals with Disabilities Education Improvement Act of 2004 (20 U.S.C. 1400 et seq.).

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.60.

IC 20-51.4-4-12Tax treatment; qualification for other programs Sec. 12. Distributions made to an ESA account under section 2 of this chapter or money in the ESA account may not be treated as income or a resource for purposes of qualifying for any other federal or state grant or program administered by the state or a political subdivision.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.61.

IC 20-51.4-4.5Chapter 4.5. Career Scholarship Account Program Fund and Accounts

20-51.4-4.5-1Establishment of accounts; application process; agreement 20-51.4-4.5-2Termination of account; funds revert; distribution tax exempt; student test number 20-51.4-4.5-3Eligibility for grant amount; termination of an account 20-51.4-4.5-4Career scholarship account program fund; uses; administration 20-51.4-4.5-5Career scholarship account administration fund; uses; administration of the program 20-51.4-4.5-5.3Career scholarship account donation fund; administration of the fund 20-51.4-4.5-6Designation and approval of sequences, courses, modern youth apprenticeships, apprenticeships, and programs of study; identifying and recommending skill competency; review; revocation of approval 20-51.4-4.5-6.5Use of grant amount 20-51.4-4.5-7Aligned with graduation plan requirement 20-51.4-4.5-8Notice to parent; written explanation of authorized uses 20-51.4-4.5-9Payment of CSA qualified expenses from other sources 20-51.4-4.5-10Payment refunds 20-51.4-4.5-11Freezing of an account; notice; petition; termination 20-51.4-4.5-12Tax treatment; qualification for other programs

IC 20-51.4-4.5-1Establishment of accounts; application process; agreement Sec. 1. (a) After June 30, 2023, a parent of a career scholarship student or an emancipated career scholarship student may establish a career scholarship account for the career scholarship student by entering into a written agreement with the department on a form prepared by the department. An application to establish a CSA account, or an application to participate in the CSA program with an ESA account, must be submitted not later than October 1 for the school year. Subject to subsection (f), the CSA account of a career scholarship student must be made in the name of the career scholarship student. The department shall make the agreement available on the website of the department.

(b) To be eligible to participate in the CSA program, a parent of a career scholarship student or an emancipated career scholarship student must agree that:

(1) a grant deposited in the career scholarship student's CSA account under section 3 of this chapter and any interest that may accrue in the CSA account will be used only for the CSA qualified expenses;

(2) money in the CSA account when the CSA account is terminated reverts to the state general fund; and

(3) the parent of the career scholarship student or the emancipated career scholarship student will use the money in the CSA account for the career scholarship student to attend one (1) or more of the sequences, courses, apprenticeships, or programs of study designated and approved under section 6(a) of this chapter.

(c) A parent of a career scholarship student may enter into a separate agreement under subsection (a) for each child of the parent. However, not more than one (1) CSA account may be established for each career scholarship student.

(d) Except as provided under subsection (f), a CSA account must be established under subsection (a) by a parent of a career scholarship student or an emancipated career scholarship student for a school year not later than thirty (30) days after the date that the department approves an application submitted under subsection (a).

(e) Except as provided in section 2 of this chapter, an agreement made under this section is valid for one (1) school year while the career scholarship student is in grades 10 through 12 and may be renewed annually. Upon graduation, or receipt of:

(1) a certificate of completion under the career scholarship student's individualized education program; or

(2) an Indiana high school equivalency diploma under IC 22-4.1-18;

the career scholarship student's CSA account is terminated.

(f) If:

(1) a parent of a career scholarship student or an emancipated career scholarship student enters into a written agreement with the department on a form under subsection (a); and

(2) the career scholarship student participates in the ESA program under this article;

the parent or emancipated career scholarship student must participate in the CSA program using the student's ESA account instead of establishing a CSA account. However, if the student ceases to participate in the ESA program, the parent of the student or the emancipated student must establish a CSA account to participate in the CSA program.

As added by P.L.202-2023, SEC.62. Amended by P.L.127-2024, SEC.6; P.L.213-2025, SEC.220.

IC 20-51.4-4.5-2Termination of account; funds revert; distribution tax exempt; student test number Sec. 2. (a) An agreement entered into under section 1 of this chapter terminates automatically for a career scholarship student if:

(1) the career scholarship student no longer resides in Indiana while the career scholarship student is eligible to receive grants under section 3 of this chapter; or

(2) the CSA account is not renewed within three hundred ninety-five (395) days after the date the CSA account was either established or last renewed.

If a CSA account is terminated under this section, money in the career scholarship student's CSA account, including any interest accrued, reverts to the state general fund.

(b) An agreement made under section 1 of this chapter for a career scholarship student while the career scholarship student is in grades 10 through 12 may be terminated before the end of the school year if the parent of the career scholarship student or the emancipated career scholarship student notifies the department in a manner specified by the department.

(c) A distribution made to a CSA account or ESA account, as applicable, under section 3 of this chapter is considered tax exempt as long as the distribution is used for:

(1) a CSA qualified expense; or

(2) an ESA qualified expense if the career scholarship student is participating in the ESA program.

The amount is subtracted from the definition of "adjusted gross income" under IC 6-3-1-3.5 to the extent the distribution used for the CSA qualified expense or ESA qualified expense, as applicable, is included in the taxpayer's adjusted federal gross income under the Internal Revenue Code.

(d) If a career scholarship student does not have a student test number, the department shall establish a student test number as described in IC 20-19-3-9.4 for the career scholarship student. The department shall provide the department information necessary for the department to comply with this subsection.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.221.

IC 20-51.4-4.5-3Eligibility for grant amount; termination of an account Sec. 3. (a) A career scholarship student who currently maintains a CSA account or an ESA account and participates in the CSA program is entitled to an annual grant amount for each school year until the student:

(1) graduates; or

(2) obtains:

(A) a certificate of completion under the student's individualized education program; or

(B) an Indiana high school equivalency diploma under IC 22-4.1-18.

(b) A career scholarship student may not receive a grant under this section after graduating, receiving an Indiana high school equivalency diploma, or obtaining a certificate of completion. The CSA annual grant amount shall be paid from the CSA program fund. The department shall deposit the CSA annual grant amount under this section, in quarterly deposits, into a career scholarship student's:

(1) CSA account; or

(2) ESA account if the student participates in the ESA program;

in a manner established by the department.

(c) Except as provided in subsection (d), at the end of the year in which a CSA account is established, the parent of a career scholarship student or the emancipated career scholarship student may roll over for use in a subsequent year a maximum of one thousand dollars ($1,000). However, for each year thereafter, the parent of the career scholarship student or emancipated eligible student may roll over one thousand dollars ($1,000) plus any amount rolled over in a previous year.

(d) A career scholarship student's CSA account shall terminate the later of:

(1) the date the student graduates high school or obtains an Indiana high school equivalency diploma; or

(2) July 1 of the year in which the student graduates high school or obtains an Indiana high school equivalency diploma.

Any money, including interest that remains in the career scholarship student's CSA account when it terminates under this subsection, reverts to the state general fund.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.222.

IC 20-51.4-4.5-4Career scholarship account program fund; uses; administration Sec. 4. (a) The career scholarship account program fund is established for the purpose of providing grants to career scholarship students under the CSA program.

(b) The department shall administer the CSA program fund.

(c) The CSA program fund consists of the following:

(1) Appropriations by the general assembly.

(2) Interest deposited in the CSA program fund under subsection (d).

(d) The treasurer of state shall invest money in the CSA program fund not currently needed to meet the obligations of the CSA program fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the CSA program fund.

(e) Money in the CSA program fund at the end of a state fiscal year reverts to the state general fund.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.223.

IC 20-51.4-4.5-5Career scholarship account administration fund; uses; administration of the program Sec. 5. (a) The career scholarship account administration fund is established for the purpose of accepting money for the CSA program to support administration of the CSA program.

(b) The department shall administer the fund.

(c) The fund consists of the following:

(1) Appropriations by the general assembly.

(2) Interest deposited in the fund under subsection (d).

(d) The treasurer of state shall invest money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.224.

IC 20-51.4-4.5-5.3Career scholarship account donation fund; administration of the fund Sec. 5.3. (a) The career scholarship account donation fund is established for the purpose of accepting donations for the career scholarship account program to support administration of the program.

(b) The department shall administer the fund.

(c) The fund consists of the following:

(1) Donations, gifts, and money received from any other source, including transfers from other funds or accounts.

(2) Interest deposited in the fund under subsection (d).

(d) The treasurer of state shall invest money in the fund not currently needed to meet the obligations of the fund in the same manner as other public money may be invested. Interest that accrues from these investments shall be deposited in the fund.

(e) Money in the fund is continuously appropriated for purposes of the fund.

(f) Money in the fund at the end of a state fiscal year does not revert to the state general fund but remains in the fund for the purposes of the fund.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.225.

IC 20-51.4-4.5-6Designation and approval of sequences, courses, modern youth apprenticeships, apprenticeships, and programs of study; identifying and recommending skill competency; review; revocation of approval Sec. 6. (a) The department shall designate and approve the following for grants under this chapter:

(1) Course sequences.

(2) Career courses.

(3) Modern youth apprenticeships.

(4) Apprenticeships or apprenticeship programs (as defined in IC 20-43-8-0.3).

(5) Programs of study leading to industry recognized credentials.

(b) A CSA participating entity may identify and recommend a skill competency learned during a course sequence, career course, modern youth apprenticeship, apprenticeship or apprenticeship program (as defined in IC 20-43-8-0.3), or a program of study leading to industry recognized credentials that has been approved under subsection (a) to the department for inclusion in the skill competency list maintained by the department under IC 20-19-3-28.5.

(c) The department shall approve a sequence, course, modern youth apprenticeship, apprenticeship, or program of study under subsection (a) that:

(1) culminates in an approved credential; and

(2) is offered by an employer that has partnered with an approved intermediary (as defined in IC 21-18-19-3) to offer the sequence, course, modern youth apprenticeship, apprenticeship, or program of study.

(d) The department may:

(1) periodically review the approval of a sequence, course, modern youth apprenticeship, apprenticeship, or program of study under subsection (c); and

(2) revoke an initial approval under subsection (c) after a period of not less than three (3) years if the sequence, course, modern youth apprenticeship, apprenticeship, or program of study fails to achieve an adequate outcome, as determined by the department.

In determining whether a sequence, course, modern youth apprenticeship, apprenticeship, or program of study has failed to achieve an adequate outcome, the department shall consider the outcomes listed in IC 20-19-3-22.3.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.226.

IC 20-51.4-4.5-6.5Use of grant amount Sec. 6.5. (a) A parent of a career scholarship student or an emancipated career scholarship student may use a CSA annual grant amount received under this chapter for costs related to obtaining a driver's license if the following conditions are met:

(1) The amount used for the costs does not exceed one thousand dollars ($1,000).

(2) The parent or emancipated CSA student demonstrates proof of hardship, as determined by the department.

(3) A driver's license is a prerequisite for being able to perform the regular functions of the sequence, course, apprenticeship, or program of study, as determined by the department.

(4) Any other criteria that the department considers relevant are satisfied.

(b) A parent of a career scholarship student or an emancipated career scholarship student may use a CSA annual grant amount received under this chapter for costs related to transportation if the following conditions are met:

(1) The amount used for the costs from the CSA annual grant amount does not exceed a total amount of six hundred twenty-five dollars ($625).

(2) The parent or emancipated CSA student demonstrates proof of hardship, as determined by the department.

(3) Any other criteria that the department considers relevant are satisfied.

(c) A CSA annual grant amount received under this chapter may not be used for the purchase or lease of a motor vehicle (as defined in IC 4-4-32.2-6).

As added by P.L.127-2024, SEC.7. Amended by P.L.159-2026, SEC.25.

IC 20-51.4-4.5-7Aligned with graduation plan requirement Sec. 7. (a) Beginning July 1, 2025, a career scholarship student may only receive a grant amount for a sequence, course, apprenticeship, or program of study described in section 6(a) of this chapter that aligns with the career scholarship student's graduation plan.

(b) The department may contract with one (1) or more entities to:

(1) establish graduation plans with career scholarship students who have not established graduation plans with a school corporation or school; and

(2) discuss sequence, course, apprenticeship, and program of study opportunities with career scholarship students.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.227.

IC 20-51.4-4.5-8Notice to parent; written explanation of authorized uses Sec. 8. Upon entering into or renewing an agreement under this chapter, the department shall provide to the parent of a career scholarship student or an emancipated career scholarship student a written explanation of the authorized uses of the money in the CSA account and the responsibilities of the parent of a career scholarship student or an emancipated career scholarship student and the department regarding a CSA account established under section 1 of this chapter or participation in the CSA program with an ESA account, if applicable.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.228.

IC 20-51.4-4.5-9Payment of CSA qualified expenses from other sources Sec. 9. (a) This chapter does not prohibit a parent of a career scholarship student or an emancipated career scholarship student from making a payment for any CSA qualified expense from a source other than the career scholarship student's CSA account.

(b) The parent of a career scholarship student or an emancipated career scholarship student is responsible for the payment of any tuition or required fees for a sequence, course, apprenticeship, or program of study designated and approved under section 6(a) of this chapter that is not paid from the career scholarship student's CSA account.

As added by P.L.202-2023, SEC.62.

IC 20-51.4-4.5-10Payment refunds Sec. 10. A CSA participating entity that receives a payment for a CSA qualified expense may not refund any part of the payment directly to the parent of the career scholarship student or the emancipated career scholarship student. Any refund provided by a CSA participating entity shall be deposited into the career scholarship student's CSA account or ESA account, as applicable.

As added by P.L.202-2023, SEC.62.

IC 20-51.4-4.5-11Freezing of an account; notice; petition; termination Sec. 11. (a) The department shall freeze the CSA account established under section 1 of this chapter of any parent of a career scholarship student or emancipated career scholarship student who:

(1) fails to comply with the terms of the agreement established under section 1 of this chapter;

(2) fails to comply with applicable laws or regulations; or

(3) substantially misuses funds in the CSA account.

(b) The department shall send written notice to the parent of the career scholarship student or the emancipated career scholarship student stating the reason for the freeze under subsection (a). The department may also send notice to the attorney general or the prosecuting attorney in the county in which the parent of the career scholarship student or the emancipated career scholarship student resides if the department believes a crime has been committed or a civil action relating to the CSA account is necessary.

(c) A parent of a career scholarship student or an emancipated career scholarship student whose CSA account has been frozen under subsection (a) may petition the department for redetermination of the decision under subsection (a) within thirty (30) days after the date the department sends notice to the parent of the career scholarship student or the emancipated career scholarship student under subsection (b). The petition must contain a written explanation stating why the department was incorrect in freezing the CSA account under subsection (a).

(d) If the department does not receive a timely submitted petition from a parent of a career scholarship student or an emancipated career scholarship student under subsection (c), the department shall terminate the CSA account.

(e) The department shall review a petition received under subsection (c) within fifteen (15) business days of receipt of the petition and issue a redetermination letter to the parent of the career scholarship student or the emancipated career scholarship student.

(f) If the department overturns the department's initial decision under subsection (a), the department shall immediately unfreeze the CSA account. If the department affirms the decision under subsection (a), the department shall give notice of the affirmation to the parent of the career scholarship student or the emancipated eligible student and terminate the CSA account.

As added by P.L.202-2023, SEC.62. Amended by P.L.213-2025, SEC.229.

IC 20-51.4-4.5-12Tax treatment; qualification for other programs Sec. 12. Distributions made to a CSA account under section 3 of this chapter or money in the CSA account may not be treated as income or a resource for purposes of qualifying for any other federal or state grant or program administered by the state or a political subdivision.

As added by P.L.202-2023, SEC.62.

IC 20-51.4-5Chapter 5. ESA Participating Entities

20-51.4-5-1Intent 20-51.4-5-2Application process for ESA participating entities; requirements 20-51.4-5-3Statewide summative assessment 20-51.4-5-4Revocation of ESA participating entity's status; notice 20-51.4-5-5ESA participating entities; charges and receipts 20-51.4-5-6Internet list of ESA participating entities 20-51.4-5-7Prohibited ESA reimbursements 20-51.4-5-8Revocation of ESA participating entity's status; account termination; repayment; civil penalty

IC 20-51.4-5-1Intent Sec. 1. It is the intent of the general assembly to honor the autonomy of nonpublic schools that choose and are authorized to become ESA participating entities under this article. A nonpublic eligible school is not an agent of the state or federal government, and therefore:

(1) the state board, department, or any other state agency may not in any way regulate the educational program of a nonpublic school that accepts money from an ESA account under this article, including the regulation of curriculum content, religious instruction or activities, classroom teaching, teacher and staff hiring requirements, and other activities carried out by the nonpublic school;

(2) the creation of the ESA program does not expand the regulatory authority of the state or the state's officers to impose additional regulation of nonpublic schools beyond those necessary to enforce the requirements of the ESA program; and

(3) an accredited nonpublic school that is an ESA participating entity may provide for the educational needs of students without governmental control.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.63; P.L.213-2025, SEC.230.

IC 20-51.4-5-2Application process for ESA participating entities; requirements Sec. 2. (a) The following individuals or entities may become an ESA participating entity by submitting an application to the department in a manner prescribed by the department:

(1) A qualified school.

(2) An individual who or tutoring agency that provides private tutoring.

(3) An individual who or entity that provides services to a student with a disability in accordance with an individualized education program developed under IC 20-35 or a service plan developed under 511 IAC 7-34 or generally accepted standards of care prescribed by the eligible student's treating physician.

(4) Subject to section 7 of this chapter, an individual who or entity that offers a course or program to an eligible student.

(5) A licensed occupational therapist.

(6) Entities that provide assessments.

(b) The department shall approve an application submitted under subsection (a) if the individual or entity meets the criteria to serve as an ESA participating entity.

(c) If it is reasonably expected by the department that an ESA participating entity will receive, from payments made under the ESA program, more than one hundred thousand dollars ($100,000) during a particular school year, the ESA participating entity shall, on or before a date prescribed by the department provide the department evidence, in a manner prescribed by the department, indicating that the ESA participating entity has unencumbered assets sufficient to pay the department an amount equal to the amount expected to be paid to the ESA participating entity under the ESA program during the particular school year.

(d) Each ESA participating entity that accepts payments made from an ESA account under this article shall provide a receipt to the parent of an eligible student or to the emancipated eligible student for each payment made.

As added by P.L.165-2021, SEC.180. Amended by P.L.132-2022, SEC.8; P.L.202-2023, SEC.64; P.L.127-2024, SEC.8; P.L.199-2025, SEC.5; P.L.213-2025, SEC.231; P.L.23-2026, SEC.218.

IC 20-51.4-5-3Statewide summative assessment Sec. 3. (a) Each qualified school that is an ESA participating entity that accepts payments for tuition and fees made from an ESA account under the ESA program shall administer to its eligible students, for the applicable grade levels as provided under IC 20-32-5.1, the statewide summative assessment unless otherwise prescribed by the eligible student's:

(1) individualized education program;

(2) service plan developed under 511 IAC 7-34;

(3) choice special education plan developed under 511 IAC 7-49; or

(4) plan developed under Section 504 of the federal Rehabilitation Act of 1973, 29 U.S.C. 794.

(b) Upon receipt of the statewide summative assessment test results, the department shall, subject to the federal Family Educational Rights and Privacy Act (20 U.S.C. 1232g) and any regulations adopted under that act:

(1) aggregate the statewide summative assessment test results according to the grade level, gender, race, and family income level of all eligible students; and

(2) make the results determined under subdivision (1) available on the department's website.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.65; P.L.150-2024, SEC.70.

IC 20-51.4-5-4Revocation of ESA participating entity's status; notice Sec. 4. (a) The department may refuse to allow an ESA participating entity to continue participation in the ESA program and revoke the ESA participating entity's status as an ESA participating entity if the department determines that the ESA participating entity accepts payments made from an ESA account under this article and:

(1) has failed to provide any educational service required by state or federal law to an eligible student receiving instruction from the ESA participating entity;

(2) has routinely failed to meet the requirements of an ESA participating entity under the ESA program; or

(3) violates section 7 of this chapter.

(b) If the department revokes an ESA participating entity's status as an ESA participating entity in the ESA program, the department shall provide notice of the revocation within thirty (30) days of the revocation to each parent of an eligible student and to each emancipated eligible student receiving instruction from the ESA participating entity who has paid the ESA participating entity from the eligible student's ESA account.

(c) The department may permit a former ESA participating entity described in subsection (a) to reapply with the department for authorization to be an ESA participating entity on a date established by the department, which may not be earlier than one (1) year after the date on which the former ESA participating entity's status as an ESA participating entity was revoked under subsection (a). The department may establish reasonable criteria or requirements that the former ESA participating entity must meet before being reapproved by the department as an ESA participating entity.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.66; P.L.199-2025, SEC.6; P.L.213-2025, SEC.232; P.L.23-2026, SEC.219.

IC 20-51.4-5-5ESA participating entities; charges and receipts Sec. 5. An approved ESA participating entity:

(1) may not charge an eligible student participating in the ESA program an amount greater than a similarly situated student who is receiving the same or similar services; and

(2) shall provide a receipt to a parent of an eligible student or an emancipated eligible student for each ESA qualified expense charged for education or related services provided to the eligible student.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.67.

IC 20-51.4-5-6Internet list of ESA participating entities Sec. 6. The department shall annually make available on the department's website a list of ESA participating entities.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.68; P.L.213-2025, SEC.233.

IC 20-51.4-5-7Prohibited ESA reimbursements Sec. 7. A parent of an eligible student who:

(1) is an ESA participating entity described in section 2(a)(4) of this chapter; and

(2) teaches a course or program only to an eligible student who is the parent's child and does not teach a course or program to any other eligible student;

may not submit a claim for reimbursement of an ESA qualified expense of tuition and fees to teach the eligible student who is the parent's child.

As added by P.L.199-2025, SEC.7.

IC 20-51.4-5-8Revocation of ESA participating entity's status; account termination; repayment; civil penalty Sec. 8. If the department revokes the ESA participating entity's status under section 4(a) of this chapter, the:

(1) department may:

(A) terminate the ESA participating entity's account; and

(B) require the ESA participating entity to repay any improperly received funds under this article to the ESA program; and

(2) attorney general may petition a court with jurisdiction to impose a civil penalty against the ESA participating entity in an amount that does not exceed five thousand dollars ($5,000).

As added by P.L.199-2025, SEC.8. Amended by P.L.23-2026, SEC.220.

IC 20-51.4-5.5Chapter 5.5. CSA Participating Entities

20-51.4-5.5-1Approval of individuals and entities as CSA participating entities 20-51.4-5.5-2Application; requirements 20-51.4-5.5-3Approval of application 20-51.4-5.5-4Repealed 20-51.4-5.5-5Revocation of CSA participating entity's status; review 20-51.4-5.5-6Notice of revocation; reapplication 20-51.4-5.5-7CSA participating entities; charges and receipts 20-51.4-5.5-8Internet list of CSA participating entities

IC 20-51.4-5.5-1Approval of individuals and entities as CSA participating entities Sec. 1. The department shall approve individuals and entities that provide sequences, courses, apprenticeships, or programs of study designated and approved under IC 20-51.4-4.5-6(a) as CSA participating entities under this article.

As added by P.L.202-2023, SEC.69. Amended by P.L.213-2025, SEC.234.

IC 20-51.4-5.5-2Application; requirements Sec. 2. To become a CSA participating entity, an individual or entity described in section 1 of this chapter must:

(1) submit an application to the department in a manner prescribed by the department;

(2) offer a sequence, course, apprenticeship, or program of study designated and approved under IC 20-51.4-4.5-6(a) for enrollment by career scholarship students; and

(3) meet any other requirements established by the department.

As added by P.L.202-2023, SEC.69. Amended by P.L.213-2025, SEC.235.

IC 20-51.4-5.5-3Approval of application Sec. 3. The department shall approve an application submitted under section 2 of this chapter to the department if the individual or entity meets the criteria to serve as a CSA participating entity.

As added by P.L.202-2023, SEC.69. Amended by P.L.150-2024, SEC.71; P.L.213-2025, SEC.236.

IC 20-51.4-5.5-4RepealedAs added by P.L.202-2023, SEC.69. Amended by P.L.127-2024, SEC.9; P.L.213-2025, SEC.237. Repealed by P.L.214-2025, SEC.211 and P.L.145-2026, SEC.124.

IC 20-51.4-5.5-5Revocation of CSA participating entity's status; review Sec. 5. (a) The department may refuse to allow a CSA participating entity to continue participation in the CSA program and revoke the CSA participating entity's status as a CSA participating entity if the department determines that the CSA participating entity accepts payments made from a CSA account under this article and:

(1) has failed to provide any educational service required by state or federal law to a career scholarship student receiving instruction from the CSA participating entity; or

(2) has routinely failed to meet the requirements of a CSA participating entity under the CSA program.

(b) If the department approves a CSA participating entity under this chapter, the department:

(1) may periodically review the sequences, courses, apprenticeships, or programs of study provided by the CSA participating entity to ensure the sequences, courses, or apprenticeships comply with the requirements under IC 20-51.4-4.5-6 and this chapter; and

(2) may revoke approval of the CSA participating entity if, at any time more than two (2) years after the CSA participating entity is approved, the department determines that the sequences, courses, apprenticeships, or programs of study that the CSA participating entity offers do not comply with the requirements under IC 20-51.4-4.5-6 or this chapter.

(c) If the department revokes approval of a CSA participating entity under subsection (b), the revocation becomes effective the immediately following school year.

As added by P.L.202-2023, SEC.69. Amended by P.L.150-2024, SEC.72; P.L.213-2025, SEC.238.

IC 20-51.4-5.5-6Notice of revocation; reapplication Sec. 6. (a) If the department revokes a CSA participating entity's status as a CSA participating entity in the CSA program under section 5 of this chapter, the department shall provide notice of the revocation within thirty (30) days of the revocation to each parent of a career scholarship student and to each emancipated career scholarship student receiving instruction from the CSA participating entity that has paid the CSA participating entity from the career scholarship student's CSA account.

(b) The department may permit a former CSA participating entity described in section 5 of this chapter to reapply to the department for authorization to be a CSA participating entity on a date established by the department, which may not be earlier than one (1) year after the date on which the former CSA participating entity's status as a CSA participating entity was revoked under section 5 of this chapter. The department may establish reasonable criteria or requirements that the former CSA participating entity must meet before being reapproved by the department as a CSA participating entity.

As added by P.L.202-2023, SEC.69. Amended by P.L.213-2025, SEC.239.

IC 20-51.4-5.5-7CSA participating entities; charges and receipts Sec. 7. An approved CSA participating entity:

(1) may not charge a career scholarship student participating in the CSA program an amount greater than a similarly situated student who is receiving the same or similar services; and

(2) shall provide a receipt to a parent of a career scholarship student or an emancipated career scholarship student for each CSA qualified expense charged for education or related services provided to the career scholarship student.

As added by P.L.202-2023, SEC.69.

IC 20-51.4-5.5-8Internet list of CSA participating entities Sec. 8. The department shall annually make available on the department's website a list of the CSA participating entities.

As added by P.L.202-2023, SEC.69. Amended by P.L.213-2025, SEC.240.

IC 20-51.4-6Chapter 6. Rulemaking

20-51.4-6-0.5Median earned income of each cohort reporting 20-51.4-6-1Rules

IC 20-51.4-6-0.5Median earned income of each cohort reporting Sec. 0.5. (a) Beginning with career scholarship students who participate in the CSA program in the 2023-2024 school year and not later than January 1, 2028, the department, in collaboration with the management performance hub established by IC 4-3-26-8, shall report on the department's website the median earned income of each cohort of career scholarship students of a particular school year.

(b) The median earned income for a particular cohort of career scholarship students shall be available on the department's website for a period of ten (10) years beginning with the school year in which the median earned income for a particular cohort is initially reported in this section.

(c) The department may not disclose any personal, identifiable information of any individual under this section.

As added by P.L.202-2023, SEC.70.

IC 20-51.4-6-1Rules Sec. 1. (a) The department shall adopt rules under IC 4-22-2 necessary to administer this article.

(b) The state board shall adopt rules under IC 4-22-2 to establish a procedure to establish an Indiana education scholarship account education service plan for an eligible student.

(c) The department may adopt rules under IC 4-22-2 necessary to administer the CSA program under this article.

As added by P.L.165-2021, SEC.180. Amended by P.L.202-2023, SEC.71; P.L.213-2025, SEC.241.

IC 20-52ARTICLE 52. REPEALEDRepealed by P.L.214-2025, SEC.212.

IC 20-53ARTICLE 53. STATE PARTICIPATION IN FEDERAL TAX CREDIT SCHOLARSHIP PROGRAM

Ch. 1.State List of Scholarship Granting Organizations

IC 20-53-1Chapter 1. State List of Scholarship Granting Organizations

20-53-1-1Participation as a covered state 20-53-1-2Identification of qualified scholarship granting organizations; applications 20-53-1-3Submission of qualified scholarship granting organization list; certification 20-53-1-4Qualified scholarship granting organization eligibility and requirements