Neighborhood Assistance Act
The Neighborhood Assistance Act Tax Credit Program for Education, administered by Virginia Department of Education (the Department), allows individuals or businesses to receive state tax credits - up to and including 65 percent of the qualified donation – for eligible donations made to approved neighborhood organizations. Tax credits issued to donors are limited by the neighborhood organization's available tax credit allocation.
For individuals, in a taxable year (January 1 - December 31) :
- $500 is the minimum donation eligible for tax credits
- $125,000 is the maximum amount of donations eligible for tax credits
For businesses:
- $616 is the minimum donation eligible for tax credits in their taxable year.
- There is no maximum donation limitation for businesses.
To participate in the Neighborhood Assistance Act Tax Credit Program for Education, neighborhood organizations must submit a completed application for the upcoming program year to the Department of Education by May 1, and meet all program requirements. Each year's application is posted to the Department's website no later than March 15.
For more information about the tax credit program, including qualified/eligible donations and requirements to become an approved neighborhood organization, please refer to the Guidelines for the Neighborhood Assistance Act Tax Credit for Education and the related forms and instructions provided below.
References
- §§58.1-439.18 through 58.1-439.22, and § 58.1-439.24
of the Code of Virginia
Contact
Tax Credit Programs
Email: tax.credits@doe.virginia.gov
Resources
- Guidelines for the Neighborhood Assistance Act Tax Credit Program for Education-This is a Word document. – Effective June 10, 2021
- Federal Poverty Guidelines
- 2021-2022 Approved Organizations-This is a Word document.
- Forms and instructions for donors making a contribution to a neighborhood organization:
- TCR-I – Tax Credit Request Form for Individuals-This is a Word document. – Fillable Form – (Revised July 25, 2019)
- TCR-B – Tax Credit Request Form for Businesses-This is a Word document. – Fillable Form – (Revised July 25, 2019)
Introduction