Education Improvement Scholarships Tax Credits Program
Introduction
The Education Improvement Scholarships Tax Credits Program provides state tax credits for persons or businesses making monetary or marketable securities donations to foundations that provide scholarships to eligible students and children attending eligible private schools and eligible nonpublic pre-kindergarten programs. The program is administered by the Virginia Department of Education. See Guidelines for the Education Improvement Scholarships Tax Credit Program Effective February 7, 2020-This is a Word document. and Code of Virginia Sections § 58.1-439.25 - § 58.1-439.28
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Information for Parents
Approved scholarship foundations make payments directly to eligible schools selected by qualifying parents or legal guardians. Parents or legal guardians should contact one or more of the Approved Scholarship Foundations-This is a Word document.to determine whether scholarship funds are available for the private school in which they wish to enroll a child.
Family income for students with disabilities with an individualized education program may not exceed 400% of federal poverty guidelines; family income for other students may not exceed 300% of federal poverty guidelines.
Scholarships are generally limited to the state share of per-pupil Standards of Quality funding —or the state share of per-pupil Virginia Preschool Initiative funding — for the locality in which the recipient resides, but attendees of some special education schools can receive larger scholarships.
- SOQ Amounts for K - 12 Scholarships Awarded for Program Year 2020-2021-This is an excel spreadsheet.
- VPI Amounts for Pre-K Scholarships Awarded for Program Year 2020-2021-This is an excel spreadsheet.
- SOQ Amounts for K - 12 Scholarships Awarded for Program Year 2019-2020-This is a Word document.
- VPI Amounts for Pre-K Scholarships Awarded for Program Year 2019-2020-This is a Word document.
Information for Schools
Participation requirements include accreditation through the Virginia Council for Private Education (VCPE), or maintenance of an assessment system that measures scholarship recipients’ annual progress in reading and mathematics using a norm-referenced achievement test recognized by the Virginia Department of Education. Schools should consult the Guidelines for the Education Improvement Scholarships Tax Credits Program-This is a Word document. for details on eligibility and reporting requirements.
- List of Norm-referenced Achievement Tests-This is a Word document. – List of achievement tests that are norm-referenced, and a list of achievement tests that are not considered norm-referenced.
- Student Achievement Test Results for School Years 2014-2015 and 2015-2016-This is a Word document. – Information related to the requirements referenced in § 58.1-439.28.D of the Code of Virginia.
- Student Achievement Test Result for School Year 2016-2017-This is a Word document. – Information related to the requirements referenced in § 58.1-439.28.D of the Code of Virginia.
- Student Achievement Test Result for School Year 2017-2018 and 2018-2019-This is a Word document. – Information related to the requirements referenced in § 58.1-439.28.D of the Code of Virginia.
Information for Scholarship Foundations and Donors
To participate in the program, scholarship foundations must apply to the Virginia Department of Education for approval to receive and administer tax credit-approved funds. Donations made prior to application approval by VDOE do not qualify for the tax credit.
- To apply as scholarship foundation under the EISTC program contact tax.credits@doe.virginia.gov.
- Approved Scholarship Foundations-This is a Word document. Revised September 24, 2019 – List of scholarship foundations eligible to receive tax credit-derived donations
Tax credits under the program are equal to 65 percent of the value of the monetary or marketable securities donation, and may be claimed against the following state taxes:
- Individual income tax
- Corporate state income tax
- Bank franchise tax
- Insurance premiums license tax
- Tax on public service corporations
Tax credits may be claimed for the taxable year in which the donation was made. Unused tax credits may be carried over for the next five succeeding taxable years or until the total amount of the credit has been taken, whichever is sooner.
The total amount of tax credits that may be issued during each program year (i.e., state fiscal year) is $25 million. For more information about donations and tax credits under the program, go to the following:
- Qualified Donations & the Tax Credit Approval Process – Frequently asked questions about donations and tax credits
- Request for Preauthorization for Tax Credits (Word) Fillable Form – Use this form to request preauthorization for a specified tax credit amount.
Legislative Reports
Reports to the Chairmen of the House and Senate Finance Committees on Scholarships Awarded
- Report to the Chairmen of the House and Senate Finance Committees for FY 2019
- Report to the Chairmen of the House and Senate Finance Committees for FY 2018
- Report to the Chairmen of the House and Senate Finance Committees for FY 2017
- Report to the Chairmen of the House and Senate Finance Committees for FY 2016
- Report to the Chairmen of the House and Senate Finance Committees for FY 2015
Contact
Tax Credit Programs
Email: tax.credits@doe.virginia.gov