Education Improvement Scholarship Tax Credits (EISTC) Program
We are pleased to share that the Educational Foundation is an approved scholarship foundation in the new Education Improvement Scholarships Tax Credits Program. This program provides state tax credits for persons or businesses making monetary or marketable securities donations that provide scholarships to eligible students for qualified educational expenses incurred in attending eligible non-public schools. The VDOE has set aside $25 million in tax credits per program year. Tax credits are distributed on a first come, first served basis
How Donors Benefit
- Credits may be applied against Virginia state income tax liability, in addition to a charitable contribution deduction for both federal and state.
- Businesses may use credits to reduce tax liability against Virginia state:
- Corporate income taxes
- Bank franchise tax
- Insurance premiums license tax
- Public Service Corporation tax
- Credits may be carried over for five succeeding years following the donation to mitigate forthcoming liabilities.
Any individual, married couple or business that pays Virginia state income tax is eligible by donating cash or marketable securities. A private or business foundation or charitable organization is generally not eligible.
Process for obtaining EISTC authorization and tax credits
- Before making the donation, please contact Cami Best-Jones, CBA Director of Development, to determine availability of credits through the EISTC program, which are distributed on a first come, first served basis.
- After availability has been confirmed, complete the preauthorization form.
- Return the form to our Development Office. We will submit the preauthorization form by secure electronic drop box to the Virginia Department of Education (VDOE) for approval.
- VDOE will respond to you (the donor) directly with a preauthorization notice once the tax credits have been approved.
- You (the donor) have 180 days after receiving approval from VDOE to complete your payment to the foundation. The signed preauthorization notice must accompany the donation.
- The Development Office will return to the electronic drop box and confirm that your gift has been received.
- VDOE will send a tax credit certificate directly to your home or business.
The EISTCP requires that participating foundations make scholarships available to students at more than one school. The CBA Educational Foundation is proud to be partnering with New Vistas School in Lynchburg, VA. Both schools share the common mission of serving students with learning disabilities. Please be sure to indicate which school your gift is intended for.
All donors are encouraged to consult with their tax advisors to determine their specific tax savings.
The Chesapeake Bay Academy Educational Foundation is a 501(c)(3)organization. For additional information and answers to your questions, please contact the Development Office at 757.497.6200.
Gifts to the Educational Foundation are tax-deductible and are acknowledged by the Development Office. For additional information, please contact Cami Best-Jones, Director of Development, at 757.497.6200 or firstname.lastname@example.org.