Pennsylvania Educational Improvement Tax (EITC) Program
Thanks to a change in PA law, corporations are able to pass thru EITC credits to individual donors in
business entities called Special Purpose Entities (SPE).
Special Purpose Entity (SPE) and Education Tax Credits
SPE is a new class of pass-through partnerships that exist to enable individual Pennsylvania tax payers to obtain Education Improvement Credits towards the individual’s personal/household Pennsylvania income taxes.
Donors designate which school(s) and/or the Erie Catholic School System they want their contribution to support. Each contribution generates a 90% tax credit towards the donor’s PA Income Taxes, filed in the spring of each year.
Households with a minimum annual PA tax liability of $3500 qualify. New donors can apply for up to $100,000 of tax liability and existing donors can apply for up to $500,000 annually.
One hundred percent of each SPE contribution to Erie Catholic goes directly towards funding student scholarships in our schools each and every year.
Realize a Child’s Dream
SPE contributions to Erie Catholic School System, and/or to any one of our six individual schools, provide much needed scholarships for eligible students to fulfill their dreams and attend our schools in grades K-8. Families from across Erie County make personal and financial sacrifices to send their children to our Catholic schools in order to provide their children with a high quality, faith based, child-centered education.
As the third largest school system in Erie County, Erie Catholic serves over 2000 students per year, and without significant scholarship help, well over half of these 2000 students would be unable to access a Catholic education. Erie Catholic gives away over $2M in unfunded scholarships each year, and it is our goal, with the help of your SPE contribution, to provide even more scholarships each year.
Help us continue to financially support hundreds of families who provide their child with a firm foundation in Catholic education. It is this firm foundation that has inspired thousands of Erie Catholic graduates to go forward in life and fulfill their dreams according to God’s calling.
Central PA Scholarship Fund Makes Process Simple & Easy
- Households complete a Joinder indicating the amount of the committed contribution
- Donors designate the school(s) and/or system for their contribution
- CPSF secures PA state tax credits for donors, and issues an approval letter to donors once credits are secured
- Donors submit a check to CPSF within 30 days of receiving approval letter
- CPSF sends money to Erie Catholic School System to allocate as designated on the Joinder
- Erie Catholic uses 100% of the contribution amount to provide scholarships to qualifying students
- Donor Federal and State K-1 forms arrive in February
- Federal K-1 lists donor investment and Federal charitable contribution, which the donor deducts on Schedule A if itemizing
- PA K-1 lists donor’s 90% PA tax credit, which will go on Payment line 23 OC for Other Credit on your PA-40
CONTACT ERIE CATHOLIC SCHOOL SYSTEM:
Bridget Philip – Interim President
Heidi Sheehan – Director of Finance
CONTACT CENTRAL PENNSYLVANIA SCHOLARSHIP FUND:
Tami Clark – Executive Director
Randy Tarpey, CPA – Board President
Educational Improvement Tax Credit Program
Pennsylvania business owners can reduce their state tax liability through the Pennsylvania Educational Improvement Tax Credit Program (EITC) and the Opportunity Scholarship Tax Credit Program (OSTC). Your eligible tax credit will help those students in the Erie Catholic School System by awarding those children a scholarship through the STAR Foundation.
Your business can receive tax credits equal to 75% of its contribution up to a maximum of $750,000 per taxable year. Can be increased to 90% of the contribution, if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $200,000 annually.
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes will qualify for this tax credit:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921