Question 1

What are Empowerment Scholarship Accounts?

Accepted Answer

Empowerment Scholarship Accounts (ESAs) are a new Missouri program that provide qualifying students with up to $6,375 in K-12 educational funding that can be used for a wide variety of expenses including tuition at private schools, tuition at public charter and district schools, homeschooling expenses, tutoring, educational therapy, transportation to schools, and much more.

Question 2

How does my family qualify for an ESA scholarship?

Accepted Answer

In order to qualify for an ESA scholarship a student must live in county with a charter form of government (including St. Louis, Jackson, St. Charles, and Jefferson counties) or a city with a population of over 30,000 (including Columbia, St. Joseph, Joplin, Jefferson City, Cape Girardeau, Springfield, Liberty, and the City of St. Louis).   A student meeting the geographical requirements must either: Have an Individualized Education Plan (IEP),

OR Be a member of a household whose income does not exceed 200 percent* of the federal free-and-reduced-price lunch income eligibility level, AND EITHER: have been a full-time student at a public school at least one semester during the previous 12 months,

OR is beginning the school year in kindergarten or 1st grade

Question 3

If my child does not receive free or reduced lunch does that mean they don’t qualify?

Accepted Answer

Income qualification is calculated based on free and reduced lunch rate but your child does not need to participate in the free and reduced lunch program to qualify. Just because your student receives free or reduced lunch does not mean you automatically qualify since some districts, especially during the pandemic, offer free lunch to all of their students regardless of income.

Question 4

With income being based on the number of people in the household does this include anyone living in the home?

Accepted Answer

Yes. Family/Household means a group of  people who may or  may not  be related and who do  not live  in an  institution or  a  boarding house, but who are living as one  economic group.   Students who are temporarily  away at school should be counted as members of the family; however, students who are full-time residents of an institution are considered a family of  one.

Question 5

When and where do I submit my application?

Accepted Answer

When applications are available, they will be submitted directly to the EAO you apply to. We are expecting applications to be available by late spring or early summer, and expect every EAO to use the same application, so if you are applying to more than one there will only be one application to fill out.

Question 6

What is an IEP?

Accepted Answer

IEP stands for Individualized Education Plan for students with special needs. Any student with special needs in public school, private school and homeschool can apply to receive an IEP through their local public school district. Typically IEP’s take up to one semester to put into place.  It is important to note that IEPs are NOT the same as an ISP or a 504 plan. Please click here to learn more about the differences.

Question 7

What is an EAO?

Accepted Answer

ESA scholarships will be distributed by Educational Assistance Organizations or EAOs. These are non-profits that are dedicated to accepting applications for ESA scholarships, disbursing scholarships, and helping families manage their accounts.

Question 8

Is income eligibility based on gross income?

Accepted Answer

Yes. Gross  Income means income before deductions for income taxes, employee's social security taxes, insurance premiums, charitable contributions, bonds, etc.   It includes the following: Monetary compensation for services, including wages, salary, commissions, or fees; Net income from non-farm self-employment; Net income from farm self-employment; Social security; Dividends or interest on savings or  bonds or  income from  estates or trusts; Net rental income; Public assistance or welfare payments; Unemployment compensation; Government civilian employee or military retirement, or pensions, or veterans payments; Private pensions or annuities; Alimony or  child support payments; Regular contributions from persons not living in the household; Net royalties; and Other cash income.    Other cash income would include cash amounts received or withdrawn from any source including savings, investments, trust accounts, and other resources which would be available to pay the price of  a  child's meal. Income does  not include any income or  benefits received under any Federal  program, which are excluded from consideration as income by any legislative prohibition. In a  household where there is income from wages and self-employment and the self-employment reflects a negative net income, consider that income as zero so  as  not  to  offset the wages earned. In applying guidelines, the family's current rate of income should be used in determining eligibility.

Question 9

What paperwork will I need?

Accepted Answer

As the application process is still being determined, a complete list of paperwork required is not yet available, but will likely include tax returns, W-2s, IEP documents (if applicable), and birth certificates.

Question 10

If my child attended public school several years ago do they qualify?

Accepted Answer

No, your student must have been in a public school for at least one semester within the year prior to the school year you are applying for.

Question 11

Will I need to reapply every year?

Accepted Answer

ESA scholarship rules are currently being created by the Treasure’s Office and we hope this process will clarify this and provide additional details.

Question 12

Do the funds transfer to college?

Accepted Answer

No. ESA scholarship funds remain with the family until the student leaves the program, moves out of state, or graduates from high school. Any funds left over at those points will be returned to the EAO for use in other scholarships. Missouri’s ESA scholarship program is focused on funding K-12 education options, NOT funding college enrollment.

Question 13

Do the funds roll over each year?

Accepted Answer

Yes! Once a student is approved for scholarships, any remaining funds at the end of a school year will roll over to the next school year. This will allow families to save money from year to year to cover expected increased costs in future years. For example, many private high schools are more expensive than private elementary schools, so a family who received a scholarship greater than their private elementary school tuition can save excess funds each year to cover the increased tuition when their child reaches high school.

Question 14

How much is the scholarship award?

Accepted Answer

Qualified students may receive scholarship funding up to the state adequacy target (SAT) as defined in section 163.011 and calculated by the department of elementary and secondary education (DESE). For the 2022 school year, the SAT is $6,375.

Question 15

What types of expenses are covered by the scholarships?

Accepted Answer

Eligible expenses include: Tuition, curriculum, and fees at a qualified school; Textbooks required by a qualified school; Educational therapies or services from a licensed or accredited practitioner or provider including, but not limited to, licensed or accredited paraprofessionals or educational aides; Tutoring services; Tuition or fees for a private, virtual school; Fees for a nationally standardized norm-referenced achievement test, advanced placement examinations, international baccalaureate examinations, or any examinations related to college or university admission; Fees for management of the Missouri Scholarship Account Program by firms selected by the education assistance organization; Services provided by a public school including, but not limited to, individual classes and extracurricular programs; Computer hardware or other technological devices that are used to help meet the qualified student’s educational needs and that are approved by an educational assistance organization; Fees for summer education programs and specialized after-school education programs; Transportation costs for mileage to and from a qualified school. Scholarships may not be used on the following: Consumable educational supplies included, but not limited to, pens, pencils, paper, markers Tuition at a private school outside the state of Missouri Payments or reimbursements to any person related within the third degree of consanguinity or affinity to a qualified student

Question 16

What is an EAO?

Accepted Answer

An EAO is a nonprofit organization that, after approval by the Missouri State Treasurer’s Office, can receive qualified contributions from individuals and businesses to establish MOScholars scholarship accounts for qualified Missouri students.

Question 17

How does my organization apply to become an EAO?

Accepted Answer

This program is under development. The Missouri Treasurer's Office anticipates online applications to become a certified EAO will be available in the Spring of 2022.

Question 18

Who can I contact for more information?

Accepted Answer

Please contact moscholars@treasurer.mo.gov for more information about the certification process.

Question 19

What is the annual tax credit cap amount?

Accepted Answer

For 2022, $25 million in MOScholars tax credits are available.

Question 20

Who can donate?

Accepted Answer

Eligible donors to the MOScholars program include any of the following that files a Missouri income tax return and is not a dependent of any other taxpayer: An individual subject to state income tax; An individual, firm, partner in a firm, corporation or shareholder in an S-Corp doing business in the state and subject to state income tax; and, An express company that pays an annual tax on its gross receipts in Missouri under chapter 153.

Question 21

What types of donations are eligible?

Accepted Answer

This program is still under development. Once launched, EAOs may begin accepting donations. Eligible contributions are monetary donations of $500 or more, including: Checks drawn on a US banking institution Money orders Payroll deductions Electronic funds transfers

Question 22

What are the features of ESA tax credits?

Accepted Answer

The tax credit is equal to 100% of an eligible donation, not to exceed 50% of the donor’s state tax liability for the tax year the credit is first claimed. ESAs tax credits may be carried forward for fur (4) subsequent tax years. The tax credit is not sellable, transferrable, or refundable.