Overview

Pennsylvania’s Educational Improvement Tax Credit (EITC) program, created in 2001, is a bipartisan initiative that allows taxpayers—both individuals and businesses—to redirect their state income taxes to support private schools like Roxborough Christian School (RCS). This Commonwealth of PA program is a unique opportunity to directly improve the education of children in your community.

The EITC program gives eligible businesses and individuals the chance to designate their Pennsylvania state tax dollars to private schools of their choosing, such as RCS. It’s one of the few opportunities to direct your tax dollars to a cause you care about—making a lasting impact on a child's education.

The Benefit to Individuals

Individuals who have a Pennsylvania tax liability of at least $500 in the year of contribution, can participate in the EITC program. Contributors, working through a Commonwealth of PA approved Special Purpose Scholarship Entity, may direct their tax dollars to RCS. In exchange, contributors receive a paid PA state income tax receipt to offset their tax obligation to PA.

The school, RCS, receives 95 to 100% of the contribution to the scholarship SPE and the contributor gets 90% of the contribution back to them via filing their PA income tax return, such that the contributor is out of pocket only 10% or less. Ask us! We will happily speak with you and or your tax advisor.

The Benefit to Businesses

Businesses, virtually identically to the Individuals section above, that have a PA income tax obligation to pay, qualify for the EITC and can receive Commonwealth of PA income tax credits equal to 90% of their contribution to RCS, up to a maximum of $750,000 per taxable year. The other 10% not received back from the PA tax credit may in most instances qualify as a charitable donation deduction in the business' US Federal tax return. Again, ask us! We will happily speak with you and or your tax advisor.

Next Steps

If you’d like to take control of where and how your tax dollars are spent, and wish to use them to enhance the educational experience at Roxborough Christian School, please reach out to our EITC coordinator, Terry Doyle at Champions For Children.

To apply, contact Terry championsforchildrenPA@gmail.com or by phone 610-505-7047.

Example:
ABC Corporation is approved to participate and donates $10,000 to Roxborough Christian School. They receive a $9,000 tax credit against their PA tax liability. The remaining $1,000 can be claimed as a charitable donation on their federal tax return, if they itemize.

Your company can participate if it is authorized to do business in Pennsylvania and is subject to one or more of the following state taxes:

• 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 certain insurance types)

• Mutual Thrift Tax

• Malt Beverage Tax

• Retaliatory Fees (Insurance Company Law of 1921)

Pass-through entities such as S-Corporations, Partnerships, LLCs, and others are also eligible to apply