Pennsylvania’s Educational Improvement Tax Credit (EITC) Program enables Pennsylvania businesses and individuals to direct their state taxes to Perelman to be used as essential scholarships for eligible students.
Pennsylvania’s Educational Improvement Tax Credit Program
The individual or business receives a tax credit for up to 90% of almost all Pennsylvania taxes (personal income tax, capital stock tax, corporate net income tax, bank share tax/mutual thrift tax, insurance premiums tax, title insurance and trust company shares tax).
These tax dollars translate into crucial scholarships enabling our school to open our doors to talented students with limited financial means.
Perelman Jewish Day School takes great pride in the diversity of our school community. Your participation in the EITC tax credit program ensures that our school fulfills its mission; to provide students from all types of families and socio-economic backgrounds with a Jewish education. We urge you to apply.
For more information about participating in this transformative EITC program, please contact Shira Wohlberg at 610-658-2518 x218.
Individuals who are W-2 employees, partners in a large partnership, or sole proprietors, can now apply to be a part of the EITC program.
Those interested will need to form, or be a part of, a Special Purpose Entity (SPE) LLC through which their tax dollars will flow, and through which they will submit their EITC application.
The Jewish Scholarship LLC entities have been established to facilitate the process for members of our community. The sole purpose of these LLCs is to serve as a pass-through for individuals’ tax dollars to the Jewish day school of their choice (in this case, Perelman!).
For those individual taxpayers who choose to join the Jewish Scholarship LLC entities, the application will be made on their behalf. In order to “join” this LLC, individuals will be asked to sign an Operating Agreement. The capital contribution, however, will not be made unless/until the LLC has been approved by the state.
Any size company may qualify to become an EITC donor. The following are the types of businesses that qualify on their own and do not need to participate in a Special Purpose Entity:
*July 2 Deadline Extremely Important
The State of Pennsylvania sets aside a limited amount of money in its budget for the EITC program. There are more EITC applications submitted each year than there is money available. Therefore, it is essential that applications be submitted on July 2. Do not submit before July 2 or your application will be denied.
All applications received on the first day of submission (July 2) are entered into a lottery and are selected randomly until all applications are numbered. The Commonwealth then awards tax credits in order of selection from the lottery until the credits are depleted. The remaining applications, in order of their random selection from the pool, are then put on a wait list. Wait list applicants will be notified as tax credits become available.
Click here for more information from the PA Department of Community and Economic Development. Click here for the online application. Click here for step-by-step instructions on how to apply. Click here for the Application Preparation Form.
The PA Department of Community and Economic Development (DCED) will notify your business or new LLC as whether or not it had been chosen.
The business or new LLC submits their donation to the Foundation for Jewish Day Schools within 60 days.
The Foundation sends an "acknowledgement of receipt" letter to the business or new LLC. It is at this point that you have the opportunity to designate your contribution to Perelman Jewish Day School.
The business or new LLC forwards acknowledgement to PA DCED who passes along tax credit information to the Pennsylvania Dept. of Revenue.
The business owners or LLC members pay reduced or no taxes, and may be eligible for a federal tax deduction.
You will note that this “How To” sheet makes reference to other programs – Pre-K EITC and OSTC. As Perelman's Pre-K (Jr. K) is scheduled to open in September 2017 and at this time our pool of students eligible for Pre-K EITC funding is small, we prefer that participants apply for K-12 EITC (also referred to SO on the application) only as this program gives Perelman the most flexibility in allocating scholarships to qualifying students. OSTC funds too are more limiting, as they are restricted to families that live in specific zip codes typically beyond our catchment area. In the future, as our Pre-K grows so may our need for Pre-K EITC/OSTC. We therefore request that you submit an application for EITC (SO) funds and remain on the EITC waitlist should your application not be approved in the first round.