Monies previously allocated to taxes are now able to be redirected as scholarships for qualified children and families desiring private educational opportunities founded on biblical principles. State Educational Tax Credit programs are quickly becoming much more recognized across the nation as a blessing, not only for the recipients but for those who have examined the advantages and found a viable method of saving or re-allocating money through a simple contribution.
Currently, there are approximately 18 states with legislation supporting educational choice by offering those who choose to donate a substantial reduction in tax liability in the form of a tax credit. These programs are unique to each state but have been fundamentally designed to provide qualified families an opportunity to choose an educational setting deemed best for their children by directly offsetting the cost of a private education through a state tax credit incentive. For example, the Commonwealth of Virginia, one of the states currently offering an Educational Scholarship Tax Credit program, allows both individuals and businesses a 65 percent (of total donation), dollar for dollar tax credit, against annual state tax liabilities. Although the primary subsidy is often identified as a state tax credit, additional incentives of these programs often include combined reductions in net income as a charitable donation with resulting reductions in the overall state and federal tax liabilities and the ability to claim the full or partial credit during the current tax year or offsetting all or a portion of the credit to succeeding taxable years (varies state by state). The impact of this powerful program has proven effective at simultaneously supplying children and families with crucial scholarships to private Christian schools that would have previously been unaffordable and delivering valuable incentives to those keen on maximizing income.
The end of the year is coming to a close. However, in many states, it’s not too late to take advantage of the tremendous tax strategy afforded through an Educational Scholarship Tax Credit program. For more information on tax credit programs, please review your state’s website or contact Renewanation for details at 1-855-TO-RENEW.