Tax Credit Gifts (EITC)
Pennsylvania’s EITC (Educational Improvement Tax Credit) program redirects your state income tax dollars to Bala House to fund scholarships for low- and middle-income families. By committing all or a portion of your state tax liability to the school for two years, you’ll receive a tax credit of 90% of your donation amount from the state, plus a federal tax benefit. A one-year donation results in a 75% tax credit. Bala House benefits from the money that is otherwise collected as taxes. 100% of your donation goes to Bala House.
For $304, you could make a gift of $3,900 to Bala House! That’s more than 10x the cost to you! (See sample illustration below.)
If you would like to support Bala House with your tax dollars, contact Emily Surovick at esurovick@balahouse.org
Who Can Participate?
Individuals with a PA tax liability of $3,500 or more can participate, as well as small businesses and corporations.
This Sounds Too Good to Be True!. What’s the Risk to Me?
The EITC has been in place since 2001 and is a well-vetted program. You will not be asked to send any money until you have been approved for the tax credits, guaranteeing that you will be able to participate and receieve the tax benefit. The application process is simple- just a one-page document.
What is a Special Purpose Entity (SPE) as it pertains to Pennsylvania education tax credits?
A Special Purpose Entity is a class of pass-through partnerships that exist solely to obtain Education Improvement Credits.
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, 501 Third Street, 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%.
Questions?
Please contact Emily Surovick, 61-664-6767, esurovick@balahouse.org
FAQs courtesy of the Central Pennsylvania Scholarship Fund, www.pennsylvaniaeitc.org
**Please note: Bala House Montessori does not provide tax, accounting, or legal advice, and this material is presented for informational purposes only. You should not rely on this material for professional advice of any kind. Contact your own professional advisors before engaging in any transaction.