Tax Credit Programs
How Business Owners Can Help
If you own a business in Pennsylvania, you can receive a significant tax credit while simultaneously supporting Torah Academy. Pennsylvania’s Educational Improvement Tax Credit (PA EITC) and Opportunity Scholarship Tax Credit (PA OSTC) provides tax credits to businesses that pay Pennsylvania’s corporate income tax for contributions to scholarship organizations that give private-school scholarships to eligible children.
The EITC/OSTC programs enables a Pennsylvania business to direct up to $750,000 of its Pennsylvania state tax dollars directly to Torah Academy’s scholarship program. Tax credits are given for 75 percent of a one-year gift and 90 percent of gifts given in two consecutive years.
Businesses authorized to operate in Pennsylvania and subject to one or more of the following taxes are eligible to participate: Corporate Net Income Tax; Capital Stock Franchise Tax, Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; Mutual Thrift Institution Tax and Personal Income Tax of S Corporation Shareholders, or partners in a general or limited partnership.
The Jewish Federation of Greater Philadelphia has set up the Foundation for Jewish Day Schools of Greater Philadelphia to comply with the tax code for EITC.
Not simply a deduction, a gift to the Foundation can be designated for Torah Academy and result in a significant tax credit for you.
How Individuals Can Help
The state has expanded the EITC/OSTC program to allow individuals to join a special purpose entity (SPE) whose sole purpose is to allow an individual’s tax liability to become eligible for these tax credit programs. Several community members, composed of CPAs and attorneys, created Jewish Scholarshipp LLC’s to serve as the SPE’s for this specific purpose. Individuals submit their EITC application directly to the SPE.
For more information, CLICK HERE.
Please contact Debbie Grad , Business Manager for more information on any of the EITC programs.