Enacted 2012 • Launched 2013 • Tax-Credit Scholarship
Individual and business taxpayers in Virginia can receive tax credits worth 65 percent of their
donations to scholarship granting organizations, 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
Latest Stats (2013-14)
- Students participating: 275
- Schools participating: 30
- Scholarship organizations: 7
- Average scholarship value: $2,456
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 ($70,650 for a family of four in 2013-14); students with special needs also are eligible and
have a higher income limitation (400 percent of the federal poverty line or $94,200 for a family of four).
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.
No legal challenges have been filed against the program.
Rules & Regulations
• Income Limit: 300 percent x poverty; 400 percent x poverty for special education students
• Prior Year Public School Requirement: Conditional
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: 100 percent state share of Standards of Quality funding per pupil
• Testing Mandates: Nationally recognized norm-referenced tests
• Credit Value: 65 percent
• Total Credit Cap: Yes (individual) / None (business)
• Budget Cap: $25 million
Code of Va. §§ 58.1-439.25-28
Leslie Hiner | firstname.lastname@example.org
Application information from the Virginia Department of Education