Tax Credit Program

What is the Tax Credit Program?

The state of Virginia setup the Virginia Education Improvement Scholarship Tax Credit Program (EISTC):  https://www.tcfhr.org/virginia-education-improvement-scholarship-tax-credit-program/  program to help provide more families an opportunity to attend a private school like Cloverhill Christian Academy (CCA).

 This program allows residents and businesses of the state of Virginia who pay state taxes the ability to allocate a portion of their payments to approved Scholarship Granting Organizations (SGOs). These organizations work with schools like CCA to provide scholarships to families in need. CCA has partnered with the Association of Christian Schools International's (ASCI) ministry, the Children's Tuition Fund (CTF).

 Brief Overview of How the process works:

Donor fills out their preauthorization.

·     This does not commit the donor to anything. This is asking the state permission to give monies to an approved Scholarship Granting Organization (SGO) and receive a tax credit.

·     Minimum donation: $500/individual

·     Maximum: $125,000/individual (if married, each spouse may give up to the max.)

·     No limits for business donations.

 This form is either submitted directly through an SGO.

·     We utilize ACSI – Children’s Tuition Fund​​​.

 Once approval is granted, the donor will receive the approval form. They are to submit this with their donation to one of the approved SGO’s.

·     Donors have up to 180 days to give once approved.

·     Donors do not have to give the full amount they are approved for but must meet the minimum donation requirement in order qualify for the program.

  • Donors are not permitted to write anything in the memo section. 

  • Donors are permitted to include a note asking for monies to be preferred to a specific school if they have qualified students. 

·     Donors may spread their donation over the 180 days (e.g., two separate checks for half the amount.). If they spread the donation over more than one payment, they will need to photocopy their approval letter.

Once the form and donation is received, the SGO will notify the state. The state in return will issue a tax credit form to the donor who will hold on to this and apply it to the current year’s taxes.

·     With their donation, they will receive a 65% state tax credit. This credit can be carried up to 5 years.

 

THE PROCESS IS STRAIGHTFORWARD, BUT OFTEN MANY QUESTIONS ARISE. FEEL FREE TO REACH OUT TO US AT ANY TIME SO WE MAY ANSWER YOUR QUESTIONS ccainfo@cloverhill.academy

Scholarship application: https://ctf.gosgo.co/schools/11802

Donor information: https://childrenstuitionfund.org/states/virginia/information-for-contributors-virginia/