1. Opening Doors for Children
Foundation for Children Education Tax Program
July 2017 | Liberty Christian Academy

2. Will You Leave a Legacy?

3. Virginia Education Tax Credit Program
LCA IS NOW AN APPROVED FOUNDATION!
LCA may now receive and administer tax-credit eligible donations as a qualified scholarship foundation under the Education Improvement Scholarships Tax Credits Program (LCA no longer falls under the auspice of ACSI to receive tax-credit donations).
The Education Improvement Scholarships Tax Credit program offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship foundations that, in turn, provide private school scholarships to poor and working class students.

4. Virginia Education Tax Credit Program
LCA TUITION ASSISTANCE (TA) DATA:
TA Requests: $632,000
Number of families at LCA: 1,155
Awarded: $180,430.60
Tax Credit Awarded (through ACSI since 13-14): $92,000
The Education Improvement Scholarships Tax Credit program offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship foundations that, in turn, provide private school scholarships to poor and working class students.

5. Virginia Education Tax Credit Program
What is it?
Virginia’s Education Improvement Scholarship Tax Credit Program (EISTCP) provides increased access to private schools for Virginia’s school-age children. It offers a 65% state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship organizations that, in turn, provide private school scholarships for qualifying students.
The Education Improvement Scholarships Tax Credit program offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to approved scholarship foundations that, in turn, provide private school scholarships to poor and working class students.

6. Donor Benefits Individuals and Businesses in Virginia Can Take Part
Apply 65% of gift value against taxes owed in a giving year.
Receive a charitable giving receipt and take a deduction against their net income as a charitable donation on both federal and state income taxes in a giving year (credit is nontransferable).
Businesses can claim credit against
Individuals can claim credit against
Corporate Income Taxes
Personal Income Taxes
Virginia Bank Franchise Tax
Virginia Insurance Premiums License Tax
Virginia Public Service Corporations Tax
Personal Income Taxes via pass-thru from S-corporations

7. Impact of Scholarship Tax Credit
Individuals (Married, filing jointly)
No Contribution
Contribution
Income before contribution
$100,000
$1,000
Taxable Income
$99,000
Virginia Taxes
Virginia Personal Tax Rate (5.75%)
$5,750
$5,692
VA Personal Tax Savings
$58
Virginia Scholarship Tax Credit
$650
Total VA Tax Savings
$708
Federal Taxes:
Income
Less state tax deduction
$5,042
Federal Taxable income
$94,250
$93,958
Federal taxes (25% marginal Rate)
$23,562
$23,489
Federal Tax Savings
$73
Total Tax Savings
$781
Net cost to contribute $1,000
$219
Please consult with your tax professional to ensure you are following the appropriate procedure.

8. Impact of Scholarship Tax Credit
Corporations
No Contribution
Contribution
Income before contribution
$1,000,000
$10,000
Taxable Income
$990,000
Virginia Taxes
Virginia Corporate Tax Rate (6%)
$60,000
$59,400
VA Corporate Tax Savings
$600
Virginia Scholarship Tax Credit
$6,500
Total VA Tax Savings
$7,100
Federal Taxes:
Income
Less state tax deduction
$52,900
Federal Taxable income
$940,000
$937,100
Federal taxes (34% marginal Rate)
$319,600
$328,614
Federal Tax Savings
$986
Total Tax Savings
$8,086
Net cost to contribute $10,000
$1,914
Please consult with your tax professional to ensure you are following the appropriate procedure.

9. Student Requirements
To be eligible for a scholarship, a student must meet one of the following requirements . . .
have attended a Virginia public school the prior year
be eligible to enter kindergarten or first grade
not have been a resident of Virginia during the preceding year
be a prior recipient of a scholarship foundation scholarship
Students must have a family income of less than 300 % of poverty levels or, in the case of students with a disability, a family income of less then 400% of poverty levels.

10. 2017 Poverty Guidelines Persons in Family/Household
300% of Poverty Guidelines
400% of Poverty Guidelines 1
$36,180
$48,240 2
$48,720
$64,960 3
$61,260
$81,680 4
$73,800
$98,400 5
$86,340
$115,120 6
$98,880
$131,840 7
$111,420
$148,560 8
$123,960
$165,280

11. How to Qualify for EISTCP Tax Credits
Individuals must give a minimum of $500 but may give as much as $125,000 a year.
There are no limits for businesses, including sole proprietors.
Donors must comply with the EISTCP approved and established process.

12. Leave a Legacy!

13. Individuals and businesses seeking to make a donation…
All you have to do is contact us!
Shannon Pratt
Director of Enrollment Management