Educational Tax Credit Programs:
Money Saved, Lives Changed
By Curtis Cornell
“States adopting these fiscally
responsible programs will realize
the effects of more money saved
and countless lives changed.”
S
TATE 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 money through a simple contribution.
These programs have been proven effective at simultane-
ously supplying children and families with crucial scholar-
ships to Christian schools that would have previously been
unaffordable and delivering valuable incentives to those
keen on maximizing income.
Reports from the National Conference of State Legisla-
tures reveal that “as of January 2017, there are 17 states
with scholarship tax credit programs.” 1 These programs
are unique to each state but have been fundamentally
designed to provide 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.
A Christian businessman and CEO of a successful, long-
standing company in Virginia states that “the education
tax credit gives me the opportunity to impact the future
of young people in a positive way and gives me control to
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designate how our tax money is spent; that is a great feeling.”
In essence, a state will allow a defined percentage of the
total donation to these approved educational programs as a
direct dollar for dollar credit against annual state tax liabili-
ties. In turn, those funds flow from a nonprofit Scholarship
Granting Organization directly to a participating private
school of choice as a scholarship for an eligible child.
Program Benefits
The heightened attention surrounding these programs have
been a direct result of combined savings found as an outcome
of the program design. Although the primary subsidy is
often identified as a state tax credit, an additional incentive
often includes combined reductions in net income as a
charitable donation and a resulting reduction in the overall
state and federal tax liabilities. Additional benefits may also
include approved participation from both individuals and
business entities and the ability to claim the full or partial
credit during the current tax year or offset all or a portion of
the credit to succeeding taxable years (varies state by state). 2
The founder and CEO of a successful financial planning
organization states, “When we were first introduced to