The Neighborhood Assistance Act Tax Credit Program is established in the Code of Virginia §58.1-439. Under the Neighborhood Assistance Act, qualifying organizations may submit education proposals to the Superintendent of Public Instruction to receive tax credits for use by business firms making donations to the organization. $4.9 million in tax credits will be available annually for education proposals approved by the Superintendent of Public Instruction.
“Education” means any type of scholastic instruction or scholastic assistance to an individual who is impoverished.
“Impoverished people” means individuals with family annual income not in excess of 180 percent of the current poverty guidelines for education proposals submitted to the Superintendent of Public Instruction requesting an allocation of tax credits under this article.
“Neighborhood organization” means any local, regional or statewide organization whose primary function is providing neighborhood assistance for impoverished people, and holding a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under the provisions of §§ 501(c)(3)(4) of the Internal Revenue Code of 1986, as amended from time to time, or any organization defined as a community action agency in the Economic Opportunity Act of 1964 (42 U.S.C. § 2701 et seq.), or any housing authority as defined in § 36-3.
"Scholastic assistance" means (i) counseling or supportive services to elementary school, middle school, secondary school, or postsecondary school students or their parents in developing a postsecondary academic or vocational education plan, including college financing options for such students or their parents, or (ii) scholarships.
