Tax Credit Gifts (EITC)
The Educational Improvement Tax Credit (EITC) for businesses has expanded to include individual tax savings through the Special Purpose Entity. EITC / SPE donations fund scholarships and tuition assistance for low- and middle-income families who otherwise couldn’t afford a Montessori education at Bala House.
Interested donors begin by joining the Central Pennsylvania Scholarship Fund, and once approved commit to donating as much as their Pennsylvania tax liability. In turn, Bala House is allowed to accept EITC / SPE donations through its partnership with Charlestown Playhouse, an approved EITC Pre-K Scholarship Organization.
Please support Bala House with your tax dollars. Contact Emily Surovick with questions: esurovick@balahouse.org.
Frequently Asked Questions
What is a Special Purpose Entity (SPE) as it pertains to Pennsylvania education tax credits?
A Special Purpose Entity is a new class of pass-through partnerships that exist solely to obtain Education Improvement Credits (EITC/OSTC).
Who can receive tax credits?
The Special Purpose Entity offers membership to individuals and couples with a minimum PA tax liability of $3,500 annually.
How much will it cost me?
You must make a minimum donation of $3,500 or up to the amount of your annual state taxes. You risk losing your credit if you choose an amount higher than your tax liability. With a two year commitment, you will receive a refund of 90% of your donation from Pennsylvania, and a federal benefit based on your donation.
Do I need to earn a particular income to qualify?
This is based on tax liability, not income, therefore each taxpayer’s situation differs. An individual or couple filing jointly must have a state tax liability of $3,500 or more. You can find your PA tax liability on Form PA-40 Line 12 of your most recent tax return.
Can these credits be used on both individual and joint tax returns?
Yes.
How do I obtain an application?
You can download an application here.
When and where do I submit my application?
Tax credits are distributed on a first-come-first-served basis until the tax credits awarded to all SPE’s by the Department of Community and Economic Development are depleted. If you submit an application, please be sure to let Bala House know so that we can take the appropriate steps on our end.
- Fax: (814) 684-1061
- Email: CentralPAScholarshipFund@gmail.com
- Mail: CPSF, Attn: Tami Clark, 227 Jefferson Ave., Tyrone, PA 16686
How do I indicate that Bala House is to receive my contribution?
On your application note that Bala House Montessori School is the recipient, and indicate the amount of tax credit you are applying for.
What percent of my contribution goes to Bala House?
100%.
FAQs courtesy of the Central Pennsylvania Scholarship Fund, www.pennsylvaniaeitc.org