HOW CAN EITC BENEFIT ME OR MY BUSINESS?
Simply put, you contribute money for educational scholarships and the EITC credits lower your tax liability. Some companies find that when they add in federal tax deductions, they save the same amount on taxes that they contributed to scholarships -- a ZERO-COST CONTRIBUTION.
HOW CAN I PARTICIPATE IN EITC AS AN INDIVIDUAL?
Pennsylvania has expanded the definition of a business to include a Special Purpose Entity (SPE). The sole and only purpose for an SPE to exist is for individuals’ Pennsylvania personal tax liabilities to flow through it so these individuals can participate in the EITC program. An SPE makes it easy for those individuals interested in supporting the Jewish Day School and the Jewish Community Center through the Jewish Federation. An SPE created by the Federation will serve as the business which enables qualified individuals to receive state tax credits for their PA taxes as well as federal charitable tax deductions. Shareholders, partners, members or employees of business firms ... most anyone can participate. In 2019, 26 individual donors contributed $169,200 toward education through the Federation SPE. In return for their generosity they each received a 90% tax credit against their PA income taxes. Please contact the Federation for more details.
The Federation participates in all of the following tax credit programs: