Fund the future of education in your community using the Virginia scholarship tax credit. You can safely redirect the taxes you already owe into scholarships that help students thrive.
State tax credit details
In Virginia, you can redirect up to $125,000 and receive a 65% state tax credit against your state income tax liability (Document 2 = State Rankings).
Applicable federal rules
Virginia is the first state to formally opt into the federal Section 25F program. Starting in 2027, this federal framework offers an additional tax credit of up to $1,700 (Document 1 = Preview). Keep in mind that your federal tax credit will be reduced by the amount of the state tax credit you claim for the same redirect.
FAQs for families and donors
Who is eligible for scholarships?
K-12 students in public, private, or religious schools whose household income is 300% or less of the area median gross income (Document 1 = Preview). Foster children receive automatic income qualification (Document 1 = Preview).
How are my redirected funds used?
Under federal rules, 90% of the organization’s income must be spent directly on scholarships (Document 1 = Preview).
What is still unknown
Total state program caps, localized household income limits, application deadlines, and step-by-step state processes are not covered in source materials.