Virginia
Opted in on January 1, 2026
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Abigail Spanberger
Governor , D
“Virginia is proud to lead the nation once again as the first state to opt in to the Education Freedom Tax Credit.”
Governor Glenn Youngkin, January 2026 (governor.virginia.gov)
FSTC Status in Virginia
Virginia was the FIRST state to formally opt in. Outgoing Gov. Glenn Youngkin (R) submitted paperwork effective January 1, 2026. New Gov. Abigail Spanberger (D) has not reversed the opt-in.
Great news!
Virginia has opted in to the Federal Scholarship Tax Credit (FSTC).
IRS Form 15714 submitted by Gov. Youngkin in late December 2025, effective January 1, 2026. Eight initial SGOs identified.
Eight initial SGOs identified by Youngkin including Step Up Virginia, ACE Scholarships, Children's Scholarship Fund, and five others. Five additional SGOs added in mid-January 2026.
FSTC Readiness Checklist for Virginia Schools
Virginia has opted in to the FSTC. Use this 7-step checklist to prepare your school for participation.
Confirm Eligibility
Verify your school is an eligible K-12 institution (private, religious, or homeschool cooperative) under FSTC program rules.
Identify SGOs
Research which Scholarship Granting Organizations operate in Virginia. Contact them to understand application processes and timelines.
Estimate Family Eligibility
Use the FSTC Income Eligibility Calculator to estimate how many of your families fall within the 300% median income threshold.
Open CalculatorPrepare Documentation
Gather documentation of qualifying educational expenses: tuition, fees, tutoring, curriculum materials, and educational therapy costs.
Designate a Coordinator
Assign an FSTC coordinator to manage scholarship applications, SGO partnerships, and family communications.
Develop Communication Plan
Create materials to inform families about FSTC eligibility, the application process, and covered expenses. Plan for information sessions and one-on-one support.
Build SGO Relationships
Establish relationships with at least one SGO before the application window opens. Understand their requirements, reporting expectations, and disbursement timelines.
Recent News
On June 8, 2026, the IRS announced in release IR-2026-76 that 27 states, including Virginia, had elected to participate in the new federal scholarship tax credit program created by the One Big Beautiful Bill, confirming Virginia's participation under Governor Abigail Spanberger. States opt in by filing IRS Form 15714, and beginning January 1, 2027 donors may claim a federal credit of up to $1,700 for contributions to qualified scholarship granting organizations.
· Internal Revenue Service (IR-2026-76)
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