Virginia

Education Improvement Scholarships Tax Credits Program

Individual and business taxpayers in Virginia can receive tax credits worth 65 percent of their donations to Scholarship Foundations, nonprofits that provide private school scholarships. An individual must donate at least $500 and may not donate more than $125,000 per year. There is no limit on the size of business donations. The number of available tax credits is capped at $25 million a year. Donors can take the credit against the same year's tax obligation.  The total scholarship for any student cannot exceed the actual education expenses of the student or 100 percent of the per-pupil amount distributed to the local public school by the state, whichever is less.  Students must come from households where family income is less than 300 percent of the federal poverty line ($71,500 for a family of four in 2014-15); students with special needs also are eligible and have a higher income limitation (400 percent of the federal poverty line or $95,400 for a family of four in 2014-15). Students must either be enrollees in grades K-1, a public school student the previous school year, a previous scholarship recipient, or a new resident of Virginia. Launched in 2013.