Participation in the EITC program allows businesses (structured as either an LLC, C corps, or S corps) and individuals (under a new provision individuals may join an LLC known as a Special Purpose Entity) to give tax dollars owed to the state of Pennsylvania to our school for tuition assistance. Pennsylvania taxes that qualify for these programs include 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, and Retaliatory Fees under section 212 of the Insurance Company Law of 1921.
If a company or individual applies for a two-year commitment to either the EITC program, 90% of their total gift is regarded by the state of Pennsylvania as a tax credit. Here’s another way of looking at the strength of this program: For every dollar given to the school through the EITC program, the state of Pennsylvania gives the school nine dollars!
From Scott Shaw, President and Senior Financial Advisor at Veritas Strategies:
If I have ever been confronted with a truly rewarding and helpful program for Plumstead Christian School, Pennsylvania’s EITC (Educational Improvement Tax Credit Program) is it! As a financial professional (as well as parent, grandfather, and Christian) none of us come across too many “no brainers” in our lifetime, but I would have to say, in my opinion, that this is one of them. To be able to significantly offset (up to 90%) my state income tax owed each year with tax credits based on my giving to PCS is a win-win. The EITC program allows me to significantly support Christian education in my local area with only a minor incremental cost. I would encourage anyone with a passion for Christian education to get educated and avail himself or herself of this very meaningful program.