Reminder: Session 3 Paperwork and Payments Due June 5
Earned Income Tax Credit Individual
Make A Gift To Help Children Learn About Nature… and Get a Tax Credit for Yourself!
The PA EITC Program Now Allows Individuals To Participate In Tax Credit Incentives
PA individuals that are eligible may give to eligible organizations and receive PA state tax credits up to 90% of their charitable donation with a two-year commitment (75% for a one-year commitment).
College Settlement is an Educational Improvement Organization (EIO) approved by the Commonwealth of Pennsylvania’s Department of Community and Economic Development (DCED) and as such is authorized to receive donations through the EITC Program.
EITC now allows Individuals to give through a Special Purpose pass-through entity (SPE) that allows for the use of credits on joint personal income tax returns.
Partnering for Our Children
- College Settlement is associating with an SPE affiliated with the Central Pennsylvania Scholarship Fund (CPSF) (Federal EIN 45-4423429) to apply for Education Tax Credits
- The Central PA Scholarship fund was established 9/13/2011 to facilitate the matching of donors with qualified educational organizations. The organization is managed by Randy Tarpey, CPA. Randy is a practicing CPA with several offices in PA.
- All services are donated by the CPSF. Therefore, 100% of the donation will go towards College Settlement.
- Go to www.pennsylvaniaeitc.org/contact-us.html for a partial listing of organizations funded by the Central Pennsylvania Scholarship Fund.
- These funds help schools send their children. A donation to College Settlement through CPSF can be used to pay for students from any school to attend. You may specify a school if you wish.
The Opportunity
- The Central Pennsylvania Scholarship Fund through their SPE Bulldog Pride, LLC, (although this may change depending in the availability of the EIO tax credits) can receive your donation and College Settlement will receive 100% of it, if so directed by you.
- By taking part in this initiative and making a commitment for two years you will receive a 90% PA state tax credit.
- This means your donation will cost no more than 10% of what you are giving to College settlement.
Qualifications for Participation in the SPE
- Minimal annual donation must be $3,500 (which after the tax credit will cost you less than $350 annually for a two-year commitment).
- Donors, and members of the SPE, must be shareholders, partners, members or employees of one or more Business Firms. A Business Firm is any for-profit business authorized to do business in Pennsylvania… as an example, owning one share of Comcast stock would qualify you. The definition of business firm does not include sole proprietorships (unless organized as an LLC) or entities not subject to tax.
How to Participate
- Donors wishing to participate in the program should complete a Joinder whereby they become members of the SPE. (Joinder and LLC Member Agreement is available below. The completed Joinder should be sent to Brian Simard at College Settlement.)
- Joinders will be submitted to the Central Pennsylvania Scholarship Fund as early as possible in the year as the available EIO credits are on a first come basis.
- The SPE applies for the credits in May. It is a priority filer as it is a current participant in the program.
- The SPE receives notification of the credits that it has been awarded, typically in the fall.
- The SPE notifies the donors of the credits awarded and the donor transfers the funds to the SPE within 30 days. If the SPE does not receive the credits, the donors will not need to fund the donation.
EITC tax credits are available to offset the following Pennsylvania State Taxes:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Insurance Company Law of 1921
- Personal Income Tax of S Corporation Shareholders
- Personal Income Tax of Partners/Members
Interested? Want to Take The Next Step?
Brian Simard, Interim Co-Executive Director, College Settlement
brian@collegesettlement.org 267-470-4831
Disclosure: Any advice contained herein (including any accompanying downloaded documents unless expressly stated otherwise) is not intended or written to be used, and cannot be used, (i) for purposes of avoiding tax penalties that may be imposed on any taxpayer or (ii) for purposes of promoting, marketing or recommending to another party any tax transaction or matter addressed herein.
Earned Income Tax Credit Corporate
Give A Learning Experience At College Settlement’s Outdoor School And Receive A State Tax Credit
Qualifying companies can receive tax credits equal to 75 percent of their contribution up to a maximum of $750,000 per taxable year. This can be increased to 90 percent of the contribution, if the business agrees to provide the same amount for two consecutive tax years.
Is your business, or the business you work for, currently registered with the PA EITC program?
If your employer participates in the program, we encourage you to request that your employer consider College Settlement to receive part of their annual donations. If a business that you own participates in the program we encourage your business to consider College Settlement to receive part of your business’s annual donations. Requests for EITC tax credits must be submitted by May 15. We add significant value to the teachers, students and school districts we serve. We are actively engaged in the education of children, teens and special needs students utilizing hands-on curriculum in the areas of environmental science (STEM), sustainability, nutrition, personal health, personal development and team skill building through camping and outdoors experiences. We are an Educational Improvement Organization (EIO) registered with the PA Educational Improvement Tax Credit (EITC) program.
A business making donations can receive State tax credits from 75 to 90% of its charitable donation
Donations under the program to College Settlement would support our exciting educational work with children from school districts in Philadelphia and Montgomery County, in programs of one, three, or more days at our Camps at Horsham. This year we welcomed teachers and students from Title I Free and Reduced lunch schools who could only come because of the generosity of companies like Hatboro Federal Savings, Softerware, and BB&T Bank.
What are Educational Improvement Tax Credits?
This program was created to provide an incentive for charitable giving by PA businesses to benefit innovative community education programs. This is actually a low-cost gift because the business is redirecting a portion of its Pennsylvania state business taxes to the participating EIO of your choice. A one-year commitment qualifies for a state tax credit of 75% of the contribution. A two-year commitment qualifies for a tax credit of 90%. This donation can also be claimed as a charitable contribution for federal tax purposes subject to certain limitations.
Tax credits under the program are limited to Pennsylvania state taxes in the year of donation and cannot be carried forward. You should consult with a tax advisor before your business makes a donation under the program.
EITC tax credits are available to offset the following Pennsylvania State Taxes:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Insurance Company Law of 1921
- Personal Income Tax of S Corporation Shareholders
- Personal Income Tax of Partners/Members
We look forward to speaking with you!
Brian Simard, Interim Co-Executive Director, College Settlement
brian@collegesettlement.org 267-470-4831
Disclosure: Any advice contained herein (including any accompanying downloaded documents unless expressly stated otherwise) is not intended or written to be used, and cannot be used, (i) for purposes of avoiding tax penalties that may be imposed on any taxpayer or (ii) for purposes of promoting, marketing or recommending to another party any tax transaction or matter addressed herein.