VA State Tax Credits: NAP & EISTCP

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VA State Tax Credits: NAP & EISTCP

Save Money While Supporting our Scholarship Program

Many children who learn differently are in need of some extra financial support to attend Chesapeake Bay Academy (CBA). CBA participates in the Neighborhood Assistance Tax Credit Program (NAP) and the Education Improvement Scholarships Tax Credit Program (EISTCP) through the Virginia Foundation for Learning Disabled Students (VFLDS). Gifts directed for the purpose of providing scholarships to low-income, learning-disabled students may be eligible for Virginia state tax credits up to 65%. CBA is pleased to offer this benefit to our donors, as credits are available.

The Education Improvement Scholarships Tax Credits program increases private school access for Virginia’s children in need. It offers a 65% state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to nonprofits that, in turn, provide private school scholarships.

Chesapeake Bay Academy, through the Virginia Foundation for LD Students (VFLDS), provides scholarships to students meeting the prescribed criteria as defined by the Virginia Department of Education for the Education Improvement Scholarship Tax Credits.

Requirements for eligibility can be found on the Virginia Department of Education website at: https://law.lis.virginia.gov/vacode/58.1-439.25/

Saving Money While Serving Children

In providing scholarships to children in need, individuals and businesses can achieve tax savings in several ways.

For the year of the donation, you may take a deduction against net income as a charitable donation on both federal and state income taxes.

The tax reduction equals the contribution amount (less the tax credit received) times the tax rate of the applicable tax (federal or state).
Subject to rules governing deductibility of charitable contributions.

For the year of the donation, you may also take a credit against Virginia taxes.

Tax reduction equals 65 percent of the amount of the donation.
Credit is non-transferable.
Credit may not exceed the tax liability but may be carried over for five succeeding years.

Businesses can claim the credit against

Corporate Income Taxes
Virginia Bank Franchise Tax
Virginia Insurance Premiums License Tax
Virginia Public Service Corporations Tax
Personal Income Taxes via pass-through from S-Corporations

Individuals can claim the credit against

Personal Income Taxes

Highlights of the Education Improvement Scholarship Tax Credits

Minimum Donation is $500 per year; maximum donation is $125,000 per year for an individual. There is no limit for businesses.
Scholarship foundations may not limit scholarships to students of one school. Scholarship Foundations are held to stringent reporting requirements on financial administration and academic achievement.
A donor is not permitted to designate a specific student to be the recipient of a scholarship.
Requirements for eligibility can be found on the Virginia Department of Education website at: https://law.lis.virginia.gov/vacode/58.1-439.25/

Demonstration of Savings for Individuals

How to Participate

Complete Parts I, II, and III of this Preauthorization Form. Return the completed form to Cami Best-Jones, director of development, 757.747.1673 or cbestjones@cba-va.org who will submit it on your behalf.
You will receive a Preauthorization Notice from the Virginia Department of Education, along with the Preauthorization Form you completed with Part IV having been completed by VDOE. Please be sure to save this.
Sign your Preauthorization Notice and send it along with your donation to Virginia Foundation for LD Students (VFLDS), 821 Baker Road, Virginia Beach, VA 23462. Donations must be submitted within 180 days after receipt of Notice.
Virginia Foundation for LD Students (VFLDS) will mail you a receipt for your charitable donation and the Virginia Department of Education will issue you a Tax Credit Certificate.
Use your charitable donation receipt and tax credit certificate when you file your taxes to reduce your tax liability.