WHAT IS EITC?
EDUCATIONAL IMPROVEMENT TAX CREDIT PROGRAM
Thank you for your interest in EITC. Before we begin, here are three questions to ask yourself:
1. PHILISOPHICAL – Would I rather my state income taxes (money I already must pay) go to the Department of Revenue or to a child’s Christian education?
2. PRACTICAL – Can I know what my yearly state income tax liability is for the current tax year?
3. FINANCIAL – Do I have the cash liquidity to make an upfront “tax payment” contribution to the SPE?
The EITC program allows individuals and businesses to simply REDIRECT their state income taxes to support Sequoia Christian School. Because the state of Pennsylvania has awarded the Association of Christian Schools International’s Children’s Tuition Fund $8.3 million in credits, there is no better time to participate and to secure your tax credits than RIGHT NOW!
HOW DOES THE PROGRAM WORK?
An individual and/or business (Sole Proprietorships, Partnerships, LLCs, S-Corps, C-Corps) can donate, up to their full state income tax liability, to a scholarship organization (Children’s Tuition Fund) and in return receive a 90% tax credit. That scholarship organization will REDIRECT your contribution to a Christian school of your choice.
HOW CAN I PARTICIPATE?
IT’S SIMPLE!!
STEP 1: RESERVE YOUR CREDITS
Complete a Children’s Tuition Fund Reservation Form.
STEP 2: CONTRIBUTE YOUR TAXES
Scan and email reservation form to Catherine Long (Manager, ACSI Children’s Tuition Fund).
Please copy [email protected] for purpose of record keeping and helping to ensure you receive your credits.
STEP 3: RECEIVE A 90% TAX CREDIT
After CTF receives your reservation form and the credits from the state of Pennsylvania, you will receive an email asking you to complete a similar form (called a “joinder”) online. This can be several days to several months after you complete your reservation form. Once you complete the online joinder, you will have 15 to 20 days to make your contribution either by secure ACH or check.
Pennsylvania Tax Credit Scholarship Program
FAQ’S
CAN I REALLY TURN MY PA STATE TAXES INTO A NEED-BASED SCHOLARSHIP THAT HELPS STUDENTS?
Yes. Individuals and businesses (Sole Proprietorships, Partnerships, LLCs, S-Corps, C-Corps) can control their PA State income taxes, direct them to a scholarship organization, and use them to fund need-based student scholarships at a Christian school of their choosing. Yes, money an individual already must pay can be directed to support a student.
HOW DOES IT WORK?
The individual or business completes a one-page non-binding reservation form and submits it to a scholarship organization. When credits are available, the scholarship organization will ask the supporter to complete a one-page joinder (like the reservation form) and makes their contribution to the scholarship organization’s Special Purpose Entity (SPE). The scholarship organization will send that contribution to the school of the supporter’s designation in the form of need-based student scholarships. The following February, the contributor will receive a 90% tax credit (Form K-1) to file with their State Taxes. In cases where individuals have made payroll withholdings or quarterly tax payments, they will likely receive a state tax refund in July or August in time to pay the following year’s taxes to the SPE. And the cycle repeats.
WHAT IS A SPECIAL PURPOSE ENTITY (SPE)?
An SPE is a legal entity, in which individuals and businesses may participate, that is established to fulfill a narrow, specific, or temporary objective. Life Center Ministries is currently partnering with ACSI (Association of Christian Schools International) Children’s Tuition Fund of PA (CTF). The requirement is now $2,000 (a combined income of $65,147 to participate. CTF awards 95% of the contribution to the school and retains 5% to support their legal and legislative efforts to promote the state tax credit program and to protect religious liberty.
HOW MUCH CAN I CONTRIBUTE?
Individuals and businesses may contribute up to the full amount of their state income tax liability.
HOW CAN I GET STARTED?
You must reserve your credits. Complete the ACSI Children’s Tuition Fund’s one-page, non-binding reservation form and submit it to ACSI Children’s Tuition Fund’s Catherine Long at [email protected]. (For tracking and projecting purposes, we ask that a copy also be sent to [email protected]).
Opportunity in 2024 is NOW!
ACSI Children’s Tuition Fund currently has $8.3 million in tax credits.
There is a tremendous opportunity to participate this year.
Reserve your credits today!
WHAT IF I HAVE MORE QUESTIONS?
Please don’t hesitate to reach out if you have questions or need assistance as you explore redirecting your state income taxes to Sequoia Christian School.