Scholar Street is an IRS-approved 501(c)(3) public charity — EIN 42-2704061 · Contributions are tax-deductible under IRC §170.
Virginia · Education Improvement Scholarships Tax Credits

Turn a Virginia tax bill
into a scholarship.

Through Virginia’s EISTC program, a gift to Scholar Street funds private-school tuition for students from lower-income families — and returns 65% of every dollar as a Virginia tax credit.

An apple on a stack of books, colored pencils and ABC blocks on a classroom desk
Scholar Street is a 501(c)(3) scholarship foundation (EIN 42-2704061) approved by the Virginia Department of Education under the EISTC program and registered to solicit contributions in Virginia.

A Virginia credit that works with the federal credit

The EISTC is a Virginia state tax-credit program, administered by the Virginia Department of Education. It is separate from the federal Education Freedom Tax Credit (IRC §25F), which begins January 1, 2027, but one contribution can qualify for both. Under the Treasury’s proposed §25F regulations, the Virginia credit is applied first to the part of your gift you don’t designate for the federal credit, so a gift of about $4,857 per person, with $1,700 designated, receives both the full 65% Virginia credit and the full $1,700 federal credit. A married couple filing jointly can claim up to $3,400 in federal credit when each spouse makes and designates their own gift. The EISTC still requires preauthorization from the Virginia Department of Education before you give, and covers taxable years through 2027. Email us and we’ll send you the preauthorization form. EISTC gifts are arranged directly with us after VDOE preauthorization, not through our online donation form.

Estimate your tax credits

Try different amounts to see what each credit is worth. Your gift is the two amounts added together: the whole gift earns the Virginia credit, and the §25F part also earns the federal credit. For reference only. This does not make a donation.

$
The part of your gift not designated for §25F. Leave it empty if you’re not giving through EISTC.
$
The part you designate for the federal credit.
Filer type
Your gift$0
Virginia EISTC credit (65%)$0
Federal §25F credit Begins January 1, 2027$0
Total credits$0
Your cost after credits$0

This is an estimate for reference only, not tax advice. EISTC gifts require preauthorization from the Virginia Department of Education before you give. Federal rules for §25F are still being finalized by the IRS. Talk to your tax advisor, and contact us to start an EISTC gift.

Ask about EISTC
65%
Virginia tax credit
$500
Individual minimum
$125K
Individual annual maximum

Video: Thomas Jefferson Institute

Your Tax Benefit

A state credit,
plus a deduction.

Most of your gift comes back as a Virginia credit. What remains may also be deductible.

A 65% Virginia tax credit

Sixty-five cents of every dollar is a credit against your Virginia tax. The credit is non-transferable and can’t exceed your tax for the year, but any unused amount carries forward up to five years.

A deduction on the remaining 35%

Because you receive a state credit, the charitable deduction applies only to the portion of your gift the credit doesn’t cover — generally 35% — on your federal and Virginia returns, subject to the usual rules for charitable deductions, including itemizing.

Example: a $10,000 gift can earn a $6,500 Virginia tax credit. The remaining $3,500 may be deductible, and its value depends on your tax rates.
Where the Money Goes

How your gift
is used.

At least 90% to scholarships

By statute, at least 90% of credit-eligible donations must be paid out as scholarships. We keep administrative costs low so the most reaches students.

Never for a specific student

Donors can’t direct a gift to an individual child. Families choose the school, and scholarships are paid directly to it.

Preauthorized gifts only

Only gifts to an approved foundation that the Department of Education has preauthorized earn the credit. Gifts made directly to a school do not.

Eligibility

Which students
qualify.

Recipients must be Virginia residents from households with income at or below 300% of the federal poverty guidelines. Students with a disability and a current Individualized Education Program (IEP) qualify at up to 400%. Other students must also meet one of the following:

Eligible to enter kindergarten or first grade
Attended a Virginia public school for at least half of the current or prior school year
Lived in another state the prior school year, without attending a Virginia private school for more than half of it
A prior recipient of a scholarship under this program
How to Donate

From request
to certificate.

Credits are reserved first-come, first-served against the state’s annual cap, so timing matters. We handle the paperwork with the Department of Education.

  1. 1

    Request the preauthorization form

    Email us and we’ll send the Virginia Department of Education preauthorization form.

  2. 2

    We submit it to the Department

    Return the completed form and we submit your preauthorization request to the Virginia Department of Education.

  3. 3

    Your credit is reserved for 180 days

    Once approved, your credit is reserved for 180 days. A preauthorization not acted on within 180 days is void.

  4. 4

    Make your gift

    Contribute cash or marketable securities within the 180 days, and we confirm receipt to the Department.

  5. 5

    Claim your credit

    The Department issues your Tax Credit Certificate. Attach it to your Virginia return for the year of your gift, and carry any unused credit forward up to five years.

This page is general information, not tax advice. Individual circumstances vary; consult your tax advisor to determine your specific savings. EISTC figures reflect the Code of Virginia (§§ 58.1-439.25 et seq.) as of September 2026. The credit is currently authorized for taxable years beginning before January 1, 2028.

A financial statement is available upon request from the Virginia Office of Charitable and Regulatory Programs, Virginia Department of Agriculture and Consumer Services, P.O. Box 1163, Richmond, VA 23218.