Giving
Earned Tax Credit
Virginia Earned Tax Credits Save Money While Supporting our Cadet Scholarship Program
Many excellent Cadet candidates are in need of some extra financial support to attend Fishburne.
A new Education Improvement Scholarships Tax Credits program increases private school access for Virginia’s children in need. It offers a 65 percent state tax credit on top of current state and federal tax deductions for monetary and marketable securities donations to nonprofits that, in turn, provide private school scholarships. Fishburne Military School, through the Fishburne-Hudgins Educational Foundation, provides scholarships to students meeting the prescribed criteria as defined by the Virginia Department of Education for the Education Improvement Scholarship Tax Credits.
- Learn more about the VDOE TAX PROGRAM
- Fill out the 2024 VDOE FORM
Requirements for eligibility can be found on the Virginia Department of Education website at: Virginia State Law Portal.
Saving Money While Serving Children
In providing scholarships to children in need, individuals and businesses can achieve tax savings in several ways.
For the year of the donation, you may take a deduction against net income as a charitable donation on both federal and state income taxes.
- The tax reduction equals the contribution amount times the tax rate of the applicable tax (federal or state).
- Subject to rules governing deductibility of charitable contributions
For the year of the donation, you may also take a credit against Virginia taxes.
- Tax reduction equals 65 percent of the amount of the donation
- Credit is non-transferable
- Credit may not exceed the tax liability but may be carried over for five succeeding years.
Businesses can claim the credit against:
- Corporate Income Taxes
- Virginia Bank Franchise Tax
- Virginia Insurance Premiums License Tax
- Virginia Public Service Corporations Tax
- Personal Income Taxes via pass-through from S-Corporations
Individuals can claim the credit against:
- Personal Income Taxes
Highlights of the Education Improvement Scholarship Tax Credits
- Minimum Donation is $500 per year; maximum donation is $125,000 per year for an individual. There is no limit for businesses.
- Scholarship foundations may not limit scholarships to students of one school. Scholarship Foundations are held to stringent reporting requirements on financial administration and academic achievement.
- A donor is not permitted to designate a specific student to be the recipient of a scholarship.
- Requirements for eligibility can be found on the Virginia Department of Education website at: Virginia State Law Portal
Effects of Scholarship Tax Credit (based on tax laws as of 2012)
| Corporations | No Contribution | Contribution |
|---|---|---|
| Income before contribution | $1,000,000 | $1,000,000 |
| Contribution | $0 | $10,000 |
| Taxable Income | $1,000,000 | $990,000 |
Virginia Taxes |
||
| VA Corporate Tax Rate (6%) | $60,000 | $59,400 |
| VA Corporate Tax Savings | $0 | $600 |
| VA Scholarship Tax Credit | $0 | $6,500 |
| Total VA Tax Savings | $0 | $7,100 |
Federal Taxes |
||
| Federal Taxable Income Before State Deduction | $1,000,000 | $990,000 |
| State Tax Deduction | $60,000 | $52,900 |
| Federal Taxable Income | $940,000 | $937,100 |
| Federal Taxes (34% marginal) | $319,600 | $318,614 |
| Federal Tax Savings | $0 | $986 |
| Total Tax Savings | $8,086 | |
Effects of Scholarship Tax Credit (based on tax laws as of 2012)
| Corporations | No Contribution | Contribution |
|---|---|---|
| Income before contribution | $100,000 | $100,000 |
| Contribution | $0 | $10,000 |
| Taxable Income | $100,000 | $99,000 |
Virginia Taxes |
||
| VA Corporate Tax Rate (6%) | $5,750 | $5,692 |
| VA Corporate Tax Savings | $0 | $58 |
| VA Scholarship Tax Credit | $0 | $650 |
| Total VA Tax Savings | $0 | $708 |
Federal Taxes |
||
| Federal Taxable Income Before State Deduction | $100,000 | $99,000 |
| State Tax Deduction | $5,750 | $5,042 |
| Federal Taxable Income | $94,250 | $93,958 |
| Federal Taxes (34% marginal) | $23,562 | $23,489 |
| Federal Tax Savings | $0 | $73 |
| Total Tax Savings | $781 | |
How to Participate
- Complete Parts I, II, and III of this Preauthorization Form. Return the completed form to Fishburne and we will submit on your behalf.
- You will receive a Preauthorization Notice from the Virginia Department of Education, along with the Preauthorization Form you completed with Part IV having been completed by VDOE. Please be sure to save this.
- Sign your Preauthorization Notice and send it along with your donation to Fishburne-Hudgins Educational Foundation Scholarship, 225 S Wayne Ave, Waynesboro, VA 22980. Donations must be submitted within 180 days after receipt of Notice.
- Fishburne Military School will mail you a receipt for your charitable donation and the Virginia Department of Education will issue you a Tax Credit Certificate.
- Use your charitable donation receipt and tax credit certificate when you file your taxes to reduce your tax liability.
Our Mission
To innovate and create the military school for the twenty first century. One that redefines what it means to graduate young men with the skills to move forward wherever their lives take them with CHARACTER \ KINSHIP \ AGENCY.
Fishburne Military School has earned the US Army’s highest level of accreditation and maintained its designation as a JROTC Honor Unit With Distinction for over 40 years. We may also nominate qualified candidates to the United States Service Academies and host one of only four Summer JROTC programs in the nation, accredited by US Army Cadet Command.