Education Improvement Scholarship Tax Credit Program

Program Type: State tax credit program for donors making scholarships available to private school students

Geographic Scope: Virginia

Focus Areas: Scholarships for eligible students attending qualified nonpublic schools in Virginia

How It Works:

• Donors make monetary donations of minimum $500 to RJF as an approved scholarship foundation
• Donors receive a tax credit equal to 65% of the monetary donation
• Tax credit can be claimed against individual income tax, corporate income tax, bank franchise tax, insurance premiums license tax, or tax on public service corporations
• Individual/married couple limit: Up to $50,000 in tax credits per taxable year
• Business entities have no annual limit
• Unused credits can be carried over for up to 5 succeeding taxable years

Eligible Donations: Cash, check, credit card, or other monetary gifts only (not goods, services, securities, or property)

Important Notes:

• Tax credits awarded on first-come, first-serve basis
• Tax credit is claimed in the taxable year FOLLOWING the year of donation
• Preauthorization from Virginia Department of Education is required before donating
• Preauthorization notices expire after 180 days if not acted upon
• RJF may designate donations to specific eligible schools
• Donors cannot recommend scholarships for their own dependents
• Swapping recommendations between parents is prohibited

Application Process for Donors

1. Request Preauthorization:
   • Individuals and businesses must first request preauthorization for a specified tax credit amount
   • Submit preauthorization request through the RJF website
2. Make Monetary Donation:
   • Accompany donation with preauthorization notice from Virginia Department of Education
   • Submit donation to RJF
3. RJF Certification:
   • RJF returns preauthorization notice to Department of Education within 20 days
   • RJF certifies donor information, donation amount, and receipt date
4. Claim Tax Credit:
   • When filing taxes for the year following donation, submit:
   • Verification from RJF
   • Tax credit certification document from Department of Education
   • Prorate credit against estimated tax payments (Q3 and Q4) and final payment if applicable

Application Process for Students

Students seeking scholarships to attend accredited private schools in Virginia should apply directly through the RJF student scholarship application portal.

For More Information: Visit rjfoundation.org for program overview and application links