The EITC program allows an individual to benefit through the use of a Special Purpose Entity (SPE).
The SPE is a pass-through entity established in order for individuals to apply for and utilize EITC credits to offset their Pennsylvania personal income tax liability. The SPE applies for credits, receives contributions from its members, then distributes the funds to a Scholarship Organization such as Valley School.
The program is based on tax liability, not income. An individual or couple filing jointly must have a state tax liability of $3,500 or more to participate. To learn whether you qualify, find your PA tax liability on Form PA-40 line 12 of your most recent PA tax return.
Donors must be employed by or own a for-profit business—or own stock in a business—that operates in Pennsylvania. You will receive a PA income tax credit equal to 90% of your contribution as well as a federal tax deduction on your remaining 10%.
For more information, please visit: https://www.pennsylvaniaeitc.org/contact-us.html