EITC Program
REDIRECT YOUR PA STATE TAXES TO SUPPORT
STUDENT SCHOLARSHIPS
Do you have a heart for Christian education? Would you like to help make it possible for more children to learn about Jesus while receiving an excellent education? The Educational Improvement Tax Credit (EITC) program allows you to use your PA state taxes to help make this a reality for more students while you receive up to 90% of this amount back as a tax credit!!
In the state of PA, individuals and businesses that pay state taxes may be eligible to participate in the EITC program, which allows you to receive up to a 90% tax credit on contributions to an EITC scholarship organization. The tax credits to eligible businesses can contribute to a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization. In 2014, Pennsylvania’s EITC legislation was amended to allow certain individuals (rather than only businesses) to participate in the EITC tax credit program through what is called a Special Purpose Entity (SPE).
For more information, please contact Kylie Murray, EITC Coordinator, HERE
EITC FAQ’s
What is EITC?
EITC stands for Educational Tax Credit Program. It is a state tax credit program that supports economically qualified students with private school tuition assistance/scholarships. The contributor receives up to 90% tax credit on the amount donated. Amount donated is based on your PA State Tax burden. Minimum amount to donate is $500.
Who can participate?
– PA business that pay any of the following taxes: corporate net income tax, bank shares tax, and/or other PA taxes.
– Individuals that are PA residents who are employed at a for profit business and/or who pay PA personal income taxes.
How does it work?
Eligible participants can receive up to 90% credit of their contributions applied against their business and/or personal taxes.
Example:
Individual has a PA tax burden of $1,000. After being enrolled in the EITC program through a SPE (Special Purpose Entity), the individual contributes $1,000. During the next tax season, the individual will receive a K1 confirming tax credit for $900. The K1 is submitted with their annual tax filing to offset their state tax liability.
Timeline:
– Sign up for Tax-Credits through SPE (January through October)
– Complete Jointer and make Contribution (Spring: February – April; Fall: August – November)
– Receive K1 through SPE (February)
– File Taxes including K1 (February – March; DON’T WAIT UNTIL APRIL 15)
– Receive refund (September – November)
