The Virginia Education Improvement Scholarships Tax Credits Program (EISTC) provides state tax credits for persons or businesses making monetary or marketable securities donations to approved scholarship foundations that provide scholarships to eligible students (at or below 300% of the poverty level) for qualified educational expenses incurred in attending eligible nonpublic schools.
The tax credit is equal to 65 percent of the monetary or marketable securities donation, and may be claimed against the individual income tax, corporate income tax, bank franchise tax, insurance premiums license tax, or tax on public service corporations. A monetary or marketable securities donation made by an individual must be at least $500 in order to qualify for the tax credit program. An individual may not be issued less than $325 or more than $81,250 in tax credits for a taxable year. However, the $81,250 tax credit limitation does not apply to credits issued to any business entity, including a sole proprietorship.
The EISTC program is administered by the McMahon Parater Education Fund, part of the Diocese of Richmond.