EITC & SPE Tax Credit Programs
There are two programs that allow Pennsylvania taxpayers to receive significant tax credits when they donate to an educational non-profit organization.
Your participation in these tax credit programs provides CRUCIAL funds to St Leo the Great Catholic School.
These funds are used exclusively for needs based financial aid – assisting us in our goal of removing financial concern as a barrier to a Catholic Education.
Approximately 40% of our student body receives needs based financial aid, and this need grows each year.
Educational Improvement Tax Credit (EITC)
The EITC program allows businesses to receive 90% tax credits when they apply to the program and then make the appropriate donation to an educational non-profit.
All Catholic Schools are educational non-profits so this works out very well for us!
EITC is great, but is limited to businesses and acceptance is NOT GUARANTEED.
Special Purpose Entity (SPE)
The SPE program is a way for individuals to receive the ETIC tax credits, without owning a business. You receive the tax credit on your personal PA taxes. SPE’s are “pass through” entities that pass down the tax credits to you!
Using the SPE program an individual can receive a 90% tax credit, just like a business. Rather than directly donating to the educational non-profit, you “invest” in the SPE and the SPE sends your investment to the non-profit of your choice.
Hypothetical Example of How SPE Works
- A participant determines they usually have a $4,000 PA State Income Tax liability on an annual basis.
- They complete the Joinder Agreement to participate in the SPE (Special Purpose Entity) and pledge $4,000.
- In the Fall (Late October / November) the SPE sends them a letter asking them to make their contribution to participate.
- The participant sends $4,000 to the SPE which will benefit Saint Leo The Great School.
- In February, they receive a K-1 form that indicates they are to receive 90% of the $4,000 donation as a tax credit from PA ($3,600).
- They file the K-1 with their taxes and receive a refund from PA in the amount of $3,600 (again 90% of the donated amount).
- The $400 difference can be claimed as a deduction on your Federal Tax Return.
- The FULL $4,000 participation amount is paid to Saint Leo’s and used EXCLUSIVELY on NEEDS BASED financial aid.
Click the links below for more information and the current SPE Joinder Agreement
SPE Commitment Form – Under $3,500
Questions on EITC or SPE?
Just complete this simple form and a member of our development team will reach out to you!
A Very Special Thank You!
St. Leo’s gratefully acknowledges those companies that are participating in the program and designating Saint Leo’s as a recipient of this tuition assistance.
EITC Donors Include:
- CM3 Building Solutions
- Drevna Physical Therapy Associates
- Foot & Ankle Associates Of Lancaster
- Hot Z Pizza
- Penn Coat Inc.
- Red Barn Consulting
- Tomlinson Bomberger Landscaping
- Tomlinson Bomberger Pest Control
- Warfel Construction
- Wire Mesh, Inc.
