Central Pennsylvania Scholarship Fund
(814) 942-4406
  • Home
  • EITC News
  • Pa Opportunity Tax Credit
  • PA EITC Tax Credit Details
  • Our EITC Partners
  • EITC Donors
  • Participating Schools
  • Frequently Asked Questions
  • Contact-Us
  • Privacy
  • OUR TEAM
  • EITC News Contents
  • Simple Tuition Solutions

Pre-Kindergarten Pennsylvania Education Tax Credit

12/1/2019

0 Comments

 
Picture
Pennsylvania Pre-Kindergarten Educational Tax Credit • Tax-Credit Scholarship

Pennsylvania provides tax credits for corporate contributions to Scholarship Organizations (SOs) -nonprofits that provide private school scholarships, or Educational Improvement Organizations (EIO) -nonprofits that support innovative programs in public schools. Tax credits are worth 90 percent of the contribution; however, a 90 percent credit can be claimed if the corporation commits to two consecutive annual contributions. A two year commitment allows the business to apply on May 15 as an existing donor in future years.  In either case, the maximum tax credit is $200,000 per company. A 100% credit is allowed on the first $10,000 of donation.  Credits are awarded to companies on a first-come, first-served basis until the cap is reached. The total amount of tax credits is limited to $12.5 million.  In 2014 due to a law change companies began passing  thru EITC tax credits to individual donors in business entities called Special Purpose Entities (SPE's).

PROGRAM DETAILS- Student Funding:
Scholarship Organizations are able to determine scholarship amounts. A Pre-Kindergarten Program is a program of instruction for three-year-old to six-year-old students other than a kindergarten, operated by a school, or in conjunction with a school, located in the commonwealth of Pennsylvania that utilizes a curriculum aligned with the curriculum of the school with which it is affiliated, and which provides a minimum of two hours of instructional and developmental activities per day at least 60 days per school year. If a provider conducts a summer program it must offer a minimum of two hours of instructional and developmental activities per day for at least 20 days over the summer recess. A provider of a Pre-Kindergarten Program must demonstrate that it will operate an eligible program by receiving a letter from a school in which the school confirms that the curricular content and methods of instruction at the Pre-Kindergarten Program are consistent with those used at the school and that the Pre-Kindergarten Program has agreed to align its instructional and developmental activities so that its students would be prepared to enter the school’s kindergarten when and if they chose to do so. A copy of this letter must be submitted to the Department for each Pre-Kindergarten Program that the Pre-Kindergarten Scholarship Organizations want to provide scholarships for eligible children to attend.

Student Eligibility:
Children are eligible for scholarships if their household incomes are not more than $90,000 plus $15,842 for each child in the family for 2019. For example, a family with one child must have an income below $105,842  whereas a family with three children must have an income below $137,526 The figures will increase in future years to adjust for inflation.

Rules & Regulations:
  1. Income Limit: $90,000 + $15,842/child 
  2. Prior Year Public School Requirement: None 
  3. Geographic Limit: Statewide 
  4. Enrollment Cap: None 
  5. Scholarship Cap: Full tuition 
  6. Testing Mandates: None 
  7. Credit Value: 90 percent (100% on first $10,000)
  8. Total Credit Cap: Yes 
  9. Budget Cap: $12.5 million
Additional Information 
Application information from the Pennsylvania Department of Community and Economic Development

Key features of the EITC:
90% tax credit for donors with 1 year or 2 year commitment 
Tax credits are typically only available May 15 for existing donors and  July 1 for new donors.
0 Comments

    Author

    Randy Tarpey CPA 

    View my profile on LinkedIn

    Categories

    All

    Archives

    December 2022
    November 2022
    August 2022
    July 2022
    May 2022
    December 2021
    October 2021
    September 2021
    August 2021
    June 2021
    May 2021
    March 2021
    January 2021
    December 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    February 2019
    January 2019
    December 2018
    October 2018
    August 2018
    July 2018
    June 2018
    April 2018
    February 2018
    January 2018
    November 2017
    September 2017
    June 2017
    January 2017
    December 2016
    October 2016
    September 2016
    August 2016
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    July 2014
    June 2014

EITC NEWS

PA OSTC Tax Credits

PA EITC Tax Credits

CONTACT US
© 2015 pennsylvaniaeitc | Contact | Privacy | Sitemap