PA TAX CREDIT PROGRAM
The Pennsylvania Educational Improvement Tax Credit (EITC) program allows businesses and individuals to redirect their PA tax dollars to help provide tuition assistance to qualified PJP students.
Educational Improvement Tax Credit Program (EITC)
A great way to provide financial assistance to Pope John Paul II High School students by reallocating your tax dollars.
How It Works
How it works for an individual:
If you have a PA tax liability of $1,000 or taxable income of $34,000 or greater, then this program may be for you. EITC allows you to make a donation to Pope John Paul II High School.
You write a check for $5,000 to Business Leadership Organized for Catholic Schools or the Foundation for Catholic Education (who oversees the EITC program for the Archdiocesan schools) and complete a simple agreement naming PJP as the recipient of your donation. PJP receives 100% of the donation.
With this donation, you become eligible for a 90% tax credit, which in this example is equal to $4,500. Therefore, your total outlay of cash is $500. ($5,000-$4,500=$500)
It can get even better if you are able to itemize your deductions. If you do, you can claim the residual amount ($500 in this example) as an itemized deduction
How it works for a business:
EITC allows you to make a donation to Pope John Paul II High school if your company owes Pennsylvania taxes and commits to make a donation to PJP for one year. Approved businesses receive a tax credit equal to 75% of the contribution. The credit increases to 90% if the business agrees to the same amount for two consecutive tax years. Neighborhood businesses, mid-sized companies and large corporations are eligible.
Assume your company owes $25,000 in Pennsylvania taxes annually and commits to making a donation for one or two years. Your Company completes an online application with the PA Department of Community and Economic Development (DCED). Once DCED approves the application, your Company has 60 days to make a donation to Business Leadership Organized for Catholic Schools (BLOCS) or the Foundation for Catholic Education (who oversees the EITC program for the Archdiocesan schools) naming PJP as the recipient of your donation. PJP receives 100% of the donation. Then within 90 days your Company must send proof of the donation (a written acknowledgement from BLOCS or the Foundation) to DCED who in turns notifies the PA Department of Revenue of the credit to be applied to the Company’s account.
If your company commits to a one-year donation, you can receive a 75% PA tax credit towards your Company’s PA taxes. Therefore, in this example in order to cover the entire $25,000 tax liability the donation must be for $33,334 ($33,334 x 75%=$25,000).
If your company commits to a two-year donation, you can receive a 90% PA tax credit per year towards your Company’s PA taxes. Therefore, in this example in order to cover the entire $25,000 tax liability the donation must be for $27,778 for each year ($27,778 x 90%=$25,000).
BLOCS or the Foundation will assist the Company through the process.
For More Information contact Mr. Vincent Cazzetta, President, Pope John Paul II High School: firstname.lastname@example.org