Many colleges are testing optional when it comes to admission. Once the student is accepted, however, some testing optional schools use ACT and SAT as a guide for placement.
The Princeton Review has published a book about the difference between SAT and ACT, which is also summarized on the Princeton Review's website: http://www.princetonreview.com/sat-act.aspx
The ACT is described as the more straightforward test of the two, mirroring the high school experience, while the SAT tests strategic thinking and demands a strong vocabulary. On the other hand, the ACT has a science component, which the SAT lacks, and the ACT math part includes trigonometry while the SAT focuses on algebra and geometry.
The National Center for Fair and Open Testing has compiled a long list of "testing optional" schools:
http://fairtest.org/university/optional
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