Pennsylvania EITC Program

EITC PROGRAM

The Pennsylvania Educational Improvement Tax Credit (EITC) Program allows both Pennsylvania taxpayers and business owners to support independent schools via scholarship funds. 

 

At Shipley, nearly $1.7 million of the tuition assistance available to students in the 2024-2025 school year was funded through the EITC Program. Donors participated either directly through their PA businesses or as individual taxpayers.

Why I Give Through EITC

Pennsylvania EITC Program

The program is designed to provide educational opportunities at schools like Shipley for students who otherwise would be unable to attend. Some reside in the lowest-performing public school systems in the Commonwealth.

 


 

Information Sessions

Join us at an upcoming information session to learn more about how you can direct your Pennsylvania state taxes to deserving Shipley students. Please register to attend by selecting a session below.

Session 1

Dates

  • Date 1
  • Date 2
  • Date 3

Session Link

Session 2

Dates

  • Date 1
  • Date 2
  • Date 3

Session Link

 

How You Can Support Shipley with Your PA Taxes

  1. JOIN AN SPE: The process starts when you join a Special Purpose Entity (SPE). A Special Purpose Entity is a new class of pass-through partnerships that exists solely for the purpose of allowing individuals and businesses to participate in the EITC program.
  2. MAKE YOUR DONATION: The SPE will ask that you make a commitment for one or two years, based on your PA tax liability. The SPE will then make a donation to Shipley.
  3. RECEIVE YOUR CREDIT: The SPE will issue you a credit (90% of your donation, for a two-year commitment) for your PA state taxes. You may also qualify for a credit on your federal taxes.

 


 

EITC FAQs

How can I participate as an individual Pennsylvania taxpayer? 
Individuals may join a Special Purpose Entity (SPE) which distributes tax credits to individuals. Joining an SPE enables Pennsylvania taxpayers the ability to receive a tax credit of up to 90% of the donation amount, as well as a federal charitable tax deduction.
Is there a minimum contribution?

The minimum requested donation amount is $5,000 and is given directly to the  SPE. The SPE will then make a donation to Shipley and issue you a credit for your state taxes.

Please contact Alex McDowell, Director of Development, and he can explain the process and direct you to an SPE.

What’s the difference between a credit and a deduction?

Tax Credits directly reduce your tax liability on a dollar-for-dollar basis. For example, a $1,000 credit lowers your tax bill by $1,000.

Tax Deductions, on the other hand, lower your taxable income based on your tax bracket. For example, if you are in the 35% tax bracket, a $1,000 deduction reduces your tax bill by $350.

The EITC credit is equal to 90% of the donor’s contribution. Example: A $10,000 donation yields a $9,000 credit.

Is this a two-year commitment?
We ask that participants make a two-year commitment to the program. Individuals who advise us that they may not be able to participate in year two may enroll for one year at the discretion of the SPE. Likewise, individuals and businesses with a large one-time event are eligible to participate for one year at the discretion of the SPE.
How can my Pennsylvania business participate?

Businesses may apply directly to the Pennsylvania Department of Community and Economic Development. Follow this link for deadlines and the application.

Businesses may also join a Special Purpose Entity (SPE) that allows tax liabilities to flow through it. The minimum requested donation amount is $5,000 and should be made to the SPE. The SPE will then make a donation to Shipley and issue you a credit for your state taxes. 

What is EITC?

Contact Us

Please contact Alex McDowell, Director of Development, and he can explain the process and direct you to an SPE.

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