{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.26.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.26.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.26.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.26.html"}],"law_id":58634,"edition_id":1,"section_id":58634,"structure_id":15394,"section_number":"58.1-439.26","catch_line":"Tax credit for donations to certain scholarship foundations","history":"2012, cc. 731, 842; 2013, cc. 713, 716; 2014, c. 176; 2016, cc. 751, 767.","full_text":"A\n\nNotwithstanding the provisions of § 30-19.1:11, for taxable years beginning on or after January 1, 2013, but before January 1, 2028, a person shall be eligible to earn a credit against any tax due under Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12 (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 in an amount equal to 65 percent of the value of the monetary or marketable securities donation made by the person to a scholarship foundation included on the list published annually by the Department of Education in accordance with the provisions of § 58.1-439.28.\n\t\t\tNo tax credit shall be allowed under this article if the value of the monetary or marketable securities donation made by an individual is less than $500. In addition, tax credits shall be issued only for the first $125,000 in value of donations made by the individual during the taxable year. The maximum aggregate donations of $125,000 for the taxable year for which tax credits may be issued and the minimum required donation of $500 shall apply on an individual basis. Such limitation on the maximum amount of tax credits issued to an individual shall not apply to credits issued to any business entity, including a sole proprietorship.B\n\nTax credits shall be issued to persons making monetary or marketable securities donations to scholarship foundations by the Department of Education on a first-come, first-served basis in accordance with procedures established by the Department of Education under the following conditions:1\n\nThe total amount of tax credits that may be issued each fiscal year under this article shall not exceed $25 million.2\n\nThe amount of the credit shall not exceed the person’s tax liability pursuant to Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12 (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26, as applicable, for the taxable year for which the credit is claimed. Any credit not usable for the taxable year for which first allowed may be carried over for credit against the taxes imposed upon the person pursuant to Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12 (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26, as applicable, in the next five succeeding taxable years or until the total amount of the tax credit has been taken, whichever is sooner.\n\t\t\t\tThe amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.C\n\nIn a form approved by the Department of Education, the person seeking to make a monetary or marketable securities donation to a scholarship foundation or a scholarship foundation on behalf of such person shall request preauthorization for a specified tax credit amount from the Superintendent of Public Instruction. The Department of Education’s preauthorization notice shall accompany the monetary or marketable securities donation from the person to the scholarship foundation, which shall, within 40 days, return the notice to the Department of Education certifying the value and type of donation and date received. Upon receipt and approval by the Department of Education of the preauthorization notice with required supporting documentation and certification of the value and type of the donation by the scholarship foundation, the Superintendent of Public Instruction shall as soon as practicable, and in no case longer than 30 days, issue a tax credit certificate to the person eligible for the tax credit. The person shall attach the tax credit certificate to the applicable tax return filed with the Department of Taxation or the State Corporation Commission, as applicable. The Department of Education shall provide a copy of the tax credit certificate to the scholarship foundation.\n\t\t\tPreauthorization notices not acted upon by a donor within 180 days of issuance shall be void. No tax credit shall be approved by the Department of Education for activities that are a part of a person’s normal course of business.","order_by":null,"text":{"0":{"id":214857,"text":"Notwithstanding the provisions of § 30-19.1:11, for taxable years beginning on or after January 1, 2013, but before January 1, 2028, a person shall be eligible to earn a credit against any tax due under Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12 (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26 in an amount equal to 65 percent of the value of the monetary or marketable securities donation made by the person to a scholarship foundation included on the list published annually by the Department of Education in accordance with the provisions of § 58.1-439.28.\n\t\t\tNo tax credit shall be allowed under this article if the value of the monetary or marketable securities donation made by an individual is less than $500. In addition, tax credits shall be issued only for the first $125,000 in value of donations made by the individual during the taxable year. The maximum aggregate donations of $125,000 for the taxable year for which tax credits may be issued and the minimum required donation of $500 shall apply on an individual basis. Such limitation on the maximum amount of tax credits issued to an individual shall not apply to credits issued to any business entity, including a sole proprietorship.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":214858,"text":"Tax credits shall be issued to persons making monetary or marketable securities donations to scholarship foundations by the Department of Education on a first-come, first-served basis in accordance with procedures established by the Department of Education under the following conditions:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":214859,"text":"The total amount of tax credits that may be issued each fiscal year under this article shall not exceed $25 million.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":214860,"text":"The amount of the credit shall not exceed the person’s tax liability pursuant to Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12 (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26, as applicable, for the taxable year for which the credit is claimed. Any credit not usable for the taxable year for which first allowed may be carried over for credit against the taxes imposed upon the person pursuant to Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12 (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26, as applicable, in the next five succeeding taxable years or until the total amount of the tax credit has been taken, whichever is sooner.\n\t\t\t\tThe amount of any credit attributable to a partnership, electing small business corporation (S corporation), or limited liability company shall be allocated to the individual partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":214861,"text":"In a form approved by the Department of Education, the person seeking to make a monetary or marketable securities donation to a scholarship foundation or a scholarship foundation on behalf of such person shall request preauthorization for a specified tax credit amount from the Superintendent of Public Instruction. The Department of Education’s preauthorization notice shall accompany the monetary or marketable securities donation from the person to the scholarship foundation, which shall, within 40 days, return the notice to the Department of Education certifying the value and type of donation and date received. Upon receipt and approval by the Department of Education of the preauthorization notice with required supporting documentation and certification of the value and type of the donation by the scholarship foundation, the Superintendent of Public Instruction shall as soon as practicable, and in no case longer than 30 days, issue a tax credit certificate to the person eligible for the tax credit. The person shall attach the tax credit certificate to the applicable tax return filed with the Department of Taxation or the State Corporation Commission, as applicable. The Department of Education shall provide a copy of the tax credit certificate to the scholarship foundation.\n\t\t\tPreauthorization notices not acted upon by a donor within 180 days of issuance shall be void. No tax credit shall be approved by the Department of Education for activities that are a part of a person’s normal course of business.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2"}},"ancestry":[{"id":15394,"edition_id":1,"name":"Education Improvement Scholarships Tax Credits","identifier":"13.3","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:54:36","date_modified":"2026-06-26 03:54:36","permalink":{"id":253691,"object_type":"structure","relational_id":15394,"identifier":"13.3","token":"58.1\/I\/3\/13.3","url":"\/58.1\/I\/3\/13.3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":64701,"structure_id":15394,"section_number":"58.1-439.25","catch_line":"(Applicable to taxable years beginning January 1, 2028) Definitions","url":"\/58.1-439.25\/","token":"58.1\/I\/3\/13.3\/58.1-439.25","metadata":false},{"id":58634,"structure_id":15394,"section_number":"58.1-439.26","catch_line":"Tax credit for donations to certain scholarship foundations","url":"\/58.1-439.26\/","token":"58.1\/I\/3\/13.3\/58.1-439.26","metadata":false},{"id":87412,"structure_id":15394,"section_number":"58.1-439.27","catch_line":"Scholarship foundation eligibility and requirements; list of foundations receiving donations","url":"\/58.1-439.27\/","token":"58.1\/I\/3\/13.3\/58.1-439.27","metadata":false},{"id":65773,"structure_id":15394,"section_number":"58.1-439.28","catch_line":"(Applicable to taxable years beginning on and after January 1, 2028) Guidelines for scholarship foundations","url":"\/58.1-439.28\/","token":"58.1\/I\/3\/13.3\/58.1-439.28","metadata":false}],"previous_section":{"id":64701,"structure_id":15394,"section_number":"58.1-439.25","catch_line":"(Applicable to taxable years beginning January 1, 2028) Definitions","url":"\/58.1-439.25\/","token":"58.1\/I\/3\/13.3\/58.1-439.25","metadata":false},"next_section":{"id":87412,"structure_id":15394,"section_number":"58.1-439.27","catch_line":"Scholarship foundation eligibility and requirements; list of foundations receiving donations","url":"\/58.1-439.27\/","token":"58.1\/I\/3\/13.3\/58.1-439.27","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.26\/","history_text":"

This law was first created in 2012. The record of its establishment is cataloged in chapters 731<\/a> and 842<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2013, chapters 713<\/a> and 716<\/a>; in 2014, chapter 176<\/a>; in 2016, chapters 751<\/a> and 767<\/a>.<\/p>","references":false,"refers_to":[{"id":80255,"section_number":"30-19.1:11","catch_line":"Legislation that creates or renews tax credits","order_by":null,"url":"\/30-19.1_11\/"},{"id":54678,"section_number":"58.1-1200","catch_line":"Title","order_by":null,"url":"\/58.1-1200\/"},{"id":56221,"section_number":"58.1-2500","catch_line":"Definitions","order_by":null,"url":"\/58.1-2500\/"},{"id":54193,"section_number":"58.1-2620","catch_line":"Basis of tax","order_by":null,"url":"\/58.1-2620\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"},{"id":65773,"section_number":"58.1-439.28","catch_line":"(Applicable to taxable years beginning on and after January 1, 2028) Guidelines for scholarship foundations","order_by":null,"url":"\/58.1-439.28\/"}],"permalink":{"id":253697,"object_type":"law","relational_id":58634,"identifier":"58.1-439.26","token":"58.1\/I\/3\/13.3\/58.1-439.26","url":"\/58.1-439.26\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.26\/","token":"58.1\/I\/3\/13.3\/58.1-439.26","dublin_core":{"Title":"Tax credit for donations to certain scholarship foundations","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.26","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding the provisions of § 30-19.1:11<\/a>, for taxable years beginning on or after January 1, 2013, but before January 1, 2028, a person shall be eligible to earn a credit against any tax due under Article 2 (§ 58.1-320<\/a> et seq.) or Article 10 (§ 58.1-400<\/a> et seq.), Chapter 12 (§ 58.1-1200<\/a> et seq.), Chapter 25 (§ 58.1-2500<\/a> et seq.), or Article 2 (§ 58.1-2620<\/a> et seq.) of Chapter 26 in an amount equal to 65 percent of the value of the monetary or marketable securities donation made by the person to a scholarship foundation<\/span> included on the list published annually by the Department<\/span> of Education in accordance with the provisions of § 58.1-439.28<\/a>.\n\t\t\tNo tax credit shall be allowed under this article if the value of the monetary or marketable securities donation made by an individual<\/span> is less than $500. In addition, tax credits shall be issued only for the first $125,000 in value of donations made by the individual<\/span> during the taxable year. The maximum aggregate donations of $125,000 for the taxable year for which tax credits may be issued and the minimum required donation of $500 shall apply on an individual<\/span> basis. Such limitation on the maximum amount of tax credits issued to an individual<\/span> shall not apply to credits issued to any business entity, including a sole proprietorship. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Tax credits shall be issued to persons making monetary or marketable securities donations to scholarship foundations<\/span> by the Department<\/span> of Education on a first-come, first-served basis in accordance with procedures established by the Department<\/span> of Education under the following conditions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The total amount of tax credits that may be issued each fiscal year under this article shall not exceed $25 million. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The amount of the credit shall not exceed the person’s tax liability pursuant to Article 2 (§ 58.1-320<\/a> et seq.) or Article 10 (§ 58.1-400<\/a> et seq.), Chapter 12 (§ 58.1-1200<\/a> et seq.), Chapter 25 (§ 58.1-2500<\/a> et seq.), or Article 2 (§ 58.1-2620<\/a> et seq.) of Chapter 26, as applicable, for the taxable year for which the credit is claimed. Any credit not usable for the taxable year for which first allowed may be carried over for credit against the taxes imposed upon the person pursuant to Article 2 (§ 58.1-320<\/a> et seq.) or Article 10 (§ 58.1-400<\/a> et seq.), Chapter 12 (§ 58.1-1200<\/a> et seq.), Chapter 25 (§ 58.1-2500<\/a> et seq.), or Article 2 (§ 58.1-2620<\/a> et seq.) of Chapter 26, as applicable, in the next five succeeding taxable years or until the total amount of the tax credit has been taken, whichever is sooner.\n\t\t\t\tThe amount of any credit attributable to a partnership, electing small business corporation<\/span> (S corporation<\/span>), or limited liability company shall be allocated to the individual<\/span> partners, shareholders, or members, respectively, in proportion to their ownership or interest in such business entities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In a form approved by the Department<\/span> of Education, the person seeking to make a monetary or marketable securities donation to a scholarship foundation<\/span> or a scholarship foundation<\/span> on behalf of such person shall request preauthorization for a specified tax credit amount from the Superintendent of Public Instruction. The Department<\/span> of Education’s preauthorization notice shall accompany the monetary or marketable securities donation from the person to the scholarship foundation<\/span>, which shall, within 40 days, return the notice to the Department<\/span> of Education certifying the value and type of donation and date received. Upon receipt and approval by the Department<\/span> of Education of the preauthorization notice with required supporting documentation and certification of the value and type of the donation by the scholarship foundation<\/span>, the Superintendent of Public Instruction shall as soon as practicable, and in no case longer than 30 days, issue<\/span> a tax credit certificate to the person eligible for the tax credit. The person shall attach the tax credit certificate to the applicable tax return filed with the Department<\/span> of Taxation or the State Corporation<\/span> Commission, as applicable. The Department<\/span> of Education shall provide a copy of the tax credit certificate to the scholarship foundation<\/span>.\n\t\t\tPreauthorization notices not acted upon by a donor within 180 days of issuance shall be void. No tax credit shall be approved by the Department<\/span> of Education for activities that are a part of a person’s normal course of business. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTAX CREDIT FOR DONATIONS TO CERTAIN SCHOLARSHIP FOUNDATIONS (\u00a7 58.1-439.26)\n\nA. Notwithstanding the provisions of § 30-19.1:11, for taxable years\nbeginning on or after January 1, 2013, but before January 1, 2028, a person\nshall be eligible to earn a credit against any tax due under Article 2 (§\n58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12 (§\n58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article 2 (§\n58.1-2620 et seq.) of Chapter 26 in an amount equal to 65 percent of the value\nof the monetary or marketable securities donation made by the person to a\nscholarship foundation included on the list published annually by the Department\nof Education in accordance with the provisions of § 58.1-439.28.\n\t\t\tNo tax credit shall be allowed under this article if the value of the\nmonetary or marketable securities donation made by an individual is less than\n$500. In addition, tax credits shall be issued only for the first $125,000 in\nvalue of donations made by the individual during the taxable year. The maximum\naggregate donations of $125,000 for the taxable year for which tax credits may\nbe issued and the minimum required donation of $500 shall apply on an individual\nbasis. Such limitation on the maximum amount of tax credits issued to an\nindividual shall not apply to credits issued to any business entity, including a\nsole proprietorship.\n\nB. Tax credits shall be issued to persons making monetary or marketable\nsecurities donations to scholarship foundations by the Department of Education\non a first-come, first-served basis in accordance with procedures established by\nthe Department of Education under the following conditions:\n\n 1. The total amount of tax credits that may be issued each fiscal year under\n this article shall not exceed $25 million.\n\n 2. The amount of the credit shall not exceed the person’s tax liability\n pursuant to Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400\n et seq.), Chapter 12 (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500\n et seq.), or Article 2 (§ 58.1-2620 et seq.) of Chapter 26, as\n applicable, for the taxable year for which the credit is claimed. Any credit\n not usable for the taxable year for which first allowed may be carried over\n for credit against the taxes imposed upon the person pursuant to Article 2\n (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.), Chapter 12\n (§ 58.1-1200 et seq.), Chapter 25 (§ 58.1-2500 et seq.), or Article\n 2 (§ 58.1-2620 et seq.) of Chapter 26, as applicable, in the next five\n succeeding taxable years or until the total amount of the tax credit has been\n taken, whichever is sooner.\n \t\t\t\tThe amount of any credit attributable to a partnership, electing small\n business corporation (S corporation), or limited liability company shall be\n allocated to the individual partners, shareholders, or members, respectively,\n in proportion to their ownership or interest in such business entities.\n\nC. In a form approved by the Department of Education, the person seeking to make\na monetary or marketable securities donation to a scholarship foundation or a\nscholarship foundation on behalf of such person shall request preauthorization\nfor a specified tax credit amount from the Superintendent of Public Instruction.\nThe Department of Education’s preauthorization notice shall accompany the\nmonetary or marketable securities donation from the person to the scholarship\nfoundation, which shall, within 40 days, return the notice to the Department of\nEducation certifying the value and type of donation and date received. Upon\nreceipt and approval by the Department of Education of the preauthorization\nnotice with required supporting documentation and certification of the value and\ntype of the donation by the scholarship foundation, the Superintendent of Public\nInstruction shall as soon as practicable, and in no case longer than 30 days,\nissue a tax credit certificate to the person eligible for the tax credit. The\nperson shall attach the tax credit certificate to the applicable tax return\nfiled with the Department of Taxation or the State Corporation Commission, as\napplicable. The Department of Education shall provide a copy of the tax credit\ncertificate to the scholarship foundation.\n\t\t\tPreauthorization notices not acted upon by a donor within 180 days of\nissuance shall be void. No tax credit shall be approved by the Department of\nEducation for activities that are a part of a person’s normal course of\nbusiness.\n\nHISTORY: 2012, cc. 731, 842; 2013, cc. 713, 716; 2014, c. 176; 2016, cc. 751,\n767.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}