PA EITC 2020 Update

PA EITC

2020 Tax Credit

Act 15 of 2020
Pennsylvania allows donors until December 31, 2020 to submit contributions for awarded PA EITC for 2020 because of the Covid-19 disaster emergency.  Thank you letters should be emailed to the DCED coordinator listed on your DCED award letter because many of the state workers are working from home due to Covid and so can not access your thank you letters for processing unless you email them.

2020 PA EITC SPE award letters

All state award letters were mailed out between August and October and our SPE has billed out all existing donors and all original wait list new donors.  Because Covid-19 has impacted donors and some have decreased their amounts or unfortunately had to withdraw we continue to accept joinder reservations for 2020 as we receive in all our SPE donation requests.  There is a wait list of new donors that have been received lately and more are coming in daily so we have reduce our maximum donation on new donors from $100,000 to $50,000 as of today.  We expect to run out of credits in mid November when all of our existing donors have donated or been informed they are out of the program and all of our new donors have had a chance to send in their checks.  

2020 PA EITC SPE process

Just a reminder of our process.  Existing donors are billed for fall credits as soon as DCED awards are received and then contacted again near the deadline to remind them we have not received their donation.  A final contact is made by email to let the donor know they are no longer eligible to send a check and we move on to new donors.  New donors complete a joinder with name, address, social security number and amount selected along with school chosen to send 100% of their donation to as scholarships to any K-12 or preschool in Pennsylvania that charges tuition.  We can not accept a check from a new donor until they are billed from an existing tax credit.  Once a new donor works their way thru the wait list a donation request is made and the new donor contributes to their special purpose entity (SPE).  Those funds are sent to the charity before year end and in January their school is contacted for scholarship information so they can get the donation funds as scholarships.  K-1's for taxes go out to donors in February with a 90% PA tax credit and a federal donation deduction on the K-1 forms.  

2020 Business PA EITC donors

Any EITC donor that wants to send their funds thru our charity can send a copy of their award letter and a letter requesting we send scholarships to their school along with a donation check.  We will honor the donors request and get the funds to your school as scholarships.  We will also send your business, bank or insurance company a thank you letter.  If we are the only donor for your award letter we will register the tax credit with DCED via email and send you a note confirming we have registered your thank you letter.  

2021 PA EITC award letters

Our charity is expecting to receive PA EITC award letters in January 2021.  We have existing donors for these award letters but room for new donors to be added to these award letters.  As soon as we run out of credits for 2020 in November we will begin providing 2021 joinder reservation forms or indicate to late 2020 donors that we can move them over to 2021.  Donation requests will go out in the end of January and be due by end of February 2021.  Schools can access these funds before school starts back in 2021.  Donors who donate in the spring can avoid paying all PA estimated taxes for the year since they have already paid with their donation and 90% PA tax credit.  

PA EITC 

PA EITC tax credits are a great way to redirect your PA taxes via donation to the school of your choice as scholarships.  We could not execute on this program without the support of DCED leader Jim O'Donnell and DCED staff, development officers at schools, statewide accountants, school volunteers and the many many generous donors that we enjoy working with every day.