Since April 15^th is typically “tax day,” today seemed like a good time to focus on tax credit scholarships.

With tax credit scholarships, taxpayers can receive full or partial tax credits when they donate to nonprofit organizations that provide private school scholarships. The first program, enacted in Arizona in 1997, allowed individuals to receive tax credits for donations to private school tuition organizations. In 2001, Pennsylvania and Florida enacted corporate tax credit scholarships, which allowed businesses to receive tax credits for scholarship donations. Other states have followed suit, and there are now 21 states with some version of tax credit scholarships.

With such a long history, it’s easy to find stories of students whose lives have been dramatically improved thanks to tax credit scholarships.

• Doritha Greene is a mom who used the Florida Tax Credit Program to send her children to a school that worked better for them. A former foster child, she says the scholarship gave her family the support they needed. “My kids experienced a lot of bullying growing up, for various reasons. Because of that, and also in the neighborhood we live in, I can’t just send them to our district schools, they’re not great.” Through the scholarship, she’s been able to send her kids to a school they love. “They want to go to school, even though when they were in public school, they didn’t want to go to school. Now they can’t wait to go,” she says.

• Patrick and Liz Cunha adopted their grandchildren and are using Arizona’s tax credit scholarships to send them to a Christian school. They praise the scholarship programs, saying without them they wouldn’t be able to afford to send the kids to their current school: “These organizations have made Christian education possible for our children. We’ve seen them not only grow academically and spiritually, but also develop socially and physically by being involved in sports, choir, student council and giving back to others through mission projects.”

Last year, we saw a new twist on tax credit scholarships: Kentucky and Missouri passed tax credit education savings accounts (ESAs). These are similar on the donor side, with individuals or businesses receiving a tax credit in exchange for a donation to a scholarship organization. But for recipients, ESAs offer a wide range of opportunities. While tax credit scholarships are typically limited to private school tuition, ESAs can be used for a variety of educational expenses—tuition, online classes, homeschool curriculum, services for children with special needs, and more. Unfortunately, school districts sued to block Kentucky’s program from being implemented, so it’s currently on hold. The Missouri program is under development.

Tax credit scholarships—and especially tax credit ESAs—are a great way to expand education choice to families. Since they are funded with private donations rather than taxes, they are less prone to onerous regulations. But this funding mechanism presents its own challenges as well since it’s dependent on donors being able to contribute each year. And state caps on donations mean both kids and donors are often turned away. In Pennsylvania, for example, the most recent data shows more than 75,000 student scholarship applications were rejected while the state waitlisted $116 million in potential K‑12 scholarship donations.

Since every state mandates compulsory education, programs like tax credit scholarships are a way to ensure families have more than just their assigned district school as an option. We’ve seen time and again that one size doesn’t fit all when it comes to education. Tax credit scholarships help provide diverse options for diverse families.