EITC Tax Credit
Although different than conventional annual giving, the EITC program is a great way to support the students of Scranton Prep.
Ideal for individuals and/or businesses, this tax-credit program directly funds the financial aid program, accounting for nearly half of all annual grants. It may, at first glance, seem too good to be true, but it’s not. It truly is an easy way to donate - and a relatively inexpensive way to do so!
For more information, please contact Christian Davis at 570-941-7743
If you pay taxes in Pennsylvania, you may be eligible to take advantage of the Educational Improvement Tax Credit (EITC). This program allows eligible INDIVIDUALS and BUSINESSES to receive up to a 90% tax credit against their state tax liability with a two-year commitment. The EITC program directly funds the financial aid program at Prep, accounting for nearly half of all scholarship dollars. Scranton Prep has established a Scholarship LLC – a special purpose entity – to allow individuals or businesses to benefit from this state program.
Keep your state tax dollars local. Create opportunities for deserving students throughout our region.
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Eligibility
Individuals who are deemed accredited investors – income limits apply. Businesses including C-Corporations, S-Corporations, partnerships, LLC’s and most other pass-through companies. Consult with your tax advisor to confirm eligibility.
How does it work?
- Sign a joinder agreement to become a member of Prep’s Scholarship LLC.
- Make your Year 1 contribution within 60 days of the LLC’s tax credit approval (typically mid-November).
- Receive a K-1 from Scranton Prep with your 90% tax credit for submission with your tax return.
- Make your Year 2 contribution (same amount as Year 1) the following year - likely around the same time.
- Receive your Year 2 K-1.
For more information, or to be guided through the process, please contact Christian Davis at 570-941-7743, cdavis@scrantonprep.org.
For Example:
- Donor contributes $10,000 to Prep's Scholarship LLC
- Donor receives $9,000 back as a PA tax credit
- Donor uses the other $1,000 as a federal charitable deduction and receives $350 back in the 35% tax bracket
Total Cost to Donor: $650
Total Contributed: $10,000!!!