Education Savings Account Program; established, Education Improvement Scholarships tax credits. (HB1396)

Introduced By

Del. Marie March (R-Floyd) with support from co-patron Del. Bill Wiley (R-Winchester)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Education Savings Account Program established; Education Improvement Scholarships Tax Credits. Establishes the Education Savings Account Program, to be administered by the Department of Education, whereby the parent of any individual who is a resident of the Commonwealth and who is eligible to enroll in a public elementary or secondary school may apply for an Education Savings Account for his child into which the Department of Education deposits certain state and local funds and from which the parent makes certain enumerated qualifying expenses to educate his child in a setting and a manner other than full-time education in a public school. The bill requires the Program to be fully implemented prior to the beginning of the 2023–2024 school year. The bill also increases the value of the Education Improvement Scholarships income tax credit for a donation to a scholarship foundation from 65 percent to 100 percent of the donation. The bill removes the aggregate limit on tax credits per year, which under current law is $25 million, and removes individual minimum and maximum required donation amounts. The bill raises the threshold for students to qualify for scholarships from 300 percent of the current poverty guidelines to 1,000 percent of free or reduced-price lunch standards or, for eligible students with a disability, from 400 percent of the current poverty guidelines to 1,200 percent of such standards. The bill grants scholarship foundations the discretion to determine what expenses may be funded by tax-credit-subsidized scholarships. Under current law, such expenses are limited by statute. The bill expands eligibility for scholarships to any student who is a resident of the Commonwealth and eligible to enroll in a public elementary or secondary school in the Commonwealth. Current law restricts eligibility to certain categories of students. The bill removes the requirement that scholarship-funded schools report test results of scholarship-funded students. The provisions of the bill pertaining to the Education Improvement Scholarships income tax credits apply starting with taxable year 2023. Read the Bill »


Bill Has Failed


11/30/2022Prefiled and ordered printed; offered 01/11/23 23100013D
11/30/2022Referred to Committee on Education
01/23/2023Assigned Education sub: Early Childhood/Innovation
01/25/2023Subcommittee recommends passing by indefinitely (8-Y 0-N)
02/07/2023Left in Education

Duplicate Bills

The following bills are identical to this one: HB1371 and SB1191.


Miriam Sullivan writes:

I like this bill. I'm glad to see it expanded
to include many other Virginia students & families & not just poverty level.

Michael Albin writes:

This is not a good bill. It does not provide all-round school choice options, esp. for home schoolers. Vouchers are better.

Bill Peabody writes:

Why not offer a straight 3-$4000 tax credit?
You can add a high income clause.
State average edu cost 12k is $12,5000
$12,500-4000 = 8500 taxpayer savings

Bill Peabody writes:

Meant to say vouchers as over 90% use the standard deduction a credit seems of little use. Why not offer an example of a median earner in Floyd co.

Bill Peabody writes:

meant to say voucher as over 85% of taxpayers use the standard deduction.
$3000-$4000 voucher

Rod Dyck writes:

This bill is a step in the right direction. Vouchers for the full cost of a student attending public schools would be an improvement. Eligibility requirements should be for all students who are Virginia residents and U.S citizens.

Michael Albin writes:

After further consideration of the EISTC, I find that it is useful only of if it extends the tax credit to 100%. The average tax liability of most of the counties in Virginia does not permit of benefiting from more than the standard deduction. Thus, most families in these counties will not benefit.

A program of simple voucher payments to parents, exempt from Virginia income tax, directly benefits parents and saves county school districts significant cost. Such a program benefits the Commonwealth's poorer counties, while also offering choice to parents in wealthier counties.

Ronald N Quasebarth writes:

This is definite good beginning step for real choice for Virginia parents and students.