Educational Improvement Tax Credits (EITC)

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Your Pennsylvania Tax Credit Can Help Provide a Classical Education for a Future Leader.  Please consider supporting Regina Luminis Academy and receive a tax credit for your business: Tax credits are available to eligible businesses contributing to a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization.

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EITC is a program that created a means for the business community to be involved with education, allowing the business community to support students of non-public schools by directing their tax payments through local non-profits as tuition assistance subsidies.

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The Educational Improvement Tax Credit (EITC), provides companies:

• 75% tax credit for donations to a non-profit scholarship or educational improvement organization.

• The tax credit increases to 90% if the company commits to making the same donations for two consecutive years.

• A business paying taxes in Pennsylvania can receive up to $400,000 in tax credits annually. More importantly, the EITC provides children and families with a choice in their education and a chance in life. -Reach Foundation

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Special Purpose Entity (SPE)

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Note that there is a new Regulation of PA Act 194 that amended Article XVII-F of the Tax Reform Code – effective Oct. 31, 2014 – as they relate to the EITC and OSTC tax credit for education rules.  This new regulation has the effect of allowing individuals who do or do not own a company to get the same tax credit privileges for donations to private schools through the EITC and OSTC program in the state of Pennsylvania by participating in an Special Purpose Entity (SPE).

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How do I apply for SPE? What is the process?

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• Step 1. Consult your tax advisor or accountant to confirm your eligibility.​​​​

• Step 2. Determine your Pennsylvania tax liability for two years and the amount you want to redirect your taxes.

• Step 3. Complete our SPE Commitment Form and reserve your spot as soon as possible! It’s first-come, first-served. Please return the form to John Kinuthia at mrkinuthia@reginaluminis.org.  John Kinuthia will forward the form to the appropriate person at The Foundation for Catholic Education. 

• Step 4. You will be notified by The Foundation for Catholic Education to write a check to your SPE. (In your first year, you may be writing a check to a different SPE based on your participation amount and where there is room.)

• Step 5. The SPE passes 100% of your contribution to Regina Luminis Academy, providing scholarships to students.

• Step 6. Around February of the following year, you will receive a K-1 Statement for your Pennsylvania taxes that will include your 90% tax credit.

• Step 7. If you are owed a refund due to overpayment, you will receive it the following fall. Please note, this is handled by a different department and refunds have been delayed.

• Step 8. You will be notified to confirm your participation again either in the fall (if you signed up in the spring) or in the summer (if you signed up in the fall).

 

If you have questions, please contact John Kinuthia at mrkinuthia@reginaluminis.org or at 610-269-3905.

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