Pennsylvania EITC
Special Purpose Entity
The Pennsylvania Education Improvement Tax Credit (EITC) Program provides a 75% tax credit for a one year donation commitment by a business and 90% tax credit for a two year donation commitment by a business. In 2014 Special Purpose Entities (SPE's) were allowed to ask for these EITC tax credits. The SPE makes the two year commitment.
90% one year individual donor to SPE
Our SPE's allow a member to be replaced after one year by a donor on a waiting list. As an existing donor you are contacted and asked to make your second year donation but if you can't or decide not to then a new donor from the new donor waiting list fills your spot in the SPE and makes the donation so the 90% commitment by the SPE to the state of Pennsylvania is fullfilled. All members receive a 90% EITC tax credit allocation from our SPE's.
Preschool EITC tax credit
Some SPE's have a Preschool EITC tax credit. The tax credit is 100% on the first $10,000 and then 90% on the rest of the preschool EITC credit. This extra $1,000 is shared equally by all members so your 90% tax credit may be 90.10% in an SPE with a preschool EITC credit.
Joinder form completed by donor
The joinder form completed by the donor for our SPE's are a reservation of a tax credit. Please do not send a donation check with the joinder form or the existing donor information request mailing. The joinder or the existing donor information request form are simply our way of maintaining our waiting list and making sure existing donors get their credits from the SPE first and then donors that are exiting are replaced and finally new donors use new SPE credits obtained by acquisition or additional credit request from the Department of Community and Economic Development (DCED).
Confirmed Joinder Reservation
Tami Clark will confirm your joinder reservation and send you a donation request with a 45 day window to send a donation check. She will contact you several times to make this donation and then go on to the next donor the waiting list because the DCED requires our SPE's to collect and remit a donation to Central Pennsylvania Scholarship Fund in 60 days. You will be billed from the first available tax credit and if you submit your joinder reservation form too late then we will offer you a tax credit from the next Spring group of credits in the new year. Please make sure you have a email confirmation from Tami on any reservation you have submitted to the charity.
90% one year individual donor to SPE
Our SPE's allow a member to be replaced after one year by a donor on a waiting list. As an existing donor you are contacted and asked to make your second year donation but if you can't or decide not to then a new donor from the new donor waiting list fills your spot in the SPE and makes the donation so the 90% commitment by the SPE to the state of Pennsylvania is fullfilled. All members receive a 90% EITC tax credit allocation from our SPE's.
Preschool EITC tax credit
Some SPE's have a Preschool EITC tax credit. The tax credit is 100% on the first $10,000 and then 90% on the rest of the preschool EITC credit. This extra $1,000 is shared equally by all members so your 90% tax credit may be 90.10% in an SPE with a preschool EITC credit.
Joinder form completed by donor
The joinder form completed by the donor for our SPE's are a reservation of a tax credit. Please do not send a donation check with the joinder form or the existing donor information request mailing. The joinder or the existing donor information request form are simply our way of maintaining our waiting list and making sure existing donors get their credits from the SPE first and then donors that are exiting are replaced and finally new donors use new SPE credits obtained by acquisition or additional credit request from the Department of Community and Economic Development (DCED).
Confirmed Joinder Reservation
Tami Clark will confirm your joinder reservation and send you a donation request with a 45 day window to send a donation check. She will contact you several times to make this donation and then go on to the next donor the waiting list because the DCED requires our SPE's to collect and remit a donation to Central Pennsylvania Scholarship Fund in 60 days. You will be billed from the first available tax credit and if you submit your joinder reservation form too late then we will offer you a tax credit from the next Spring group of credits in the new year. Please make sure you have a email confirmation from Tami on any reservation you have submitted to the charity.
