The Education Improvement Scholarships Tax Credit program offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship foundations that, in turn, provide private school scholarships to poor and working class students.
The minimum donation is $500 per year. The maximum donation for individuals is $125,000. There is no limit for business donations.
For the year of the donation, donors may take a credit against Virginia taxes equal to 65 percent of the donation, as well as a deduction against their net income as a charitable donation on both their federal and state income taxes.
The easiest route to making a donation is to contact the scholarship foundation you wish to support, and they will walk donors through the process of making a donation.
An alternative route is to visit the Department of Education website and download a tax pre-authorization form.
The Thomas Jefferson Institute for Public Policy has published a brochure providing more information for potential donors about the Virginia Education Improvement Scholarship Tax Credit. To download a copy of the brochure, click the image on the left or click here.