Foundation for Catholic Education PA Tax Credit Programs 2019-20 - - PowerPoint PPT Presentation
Foundation for Catholic Education PA Tax Credit Programs 2019-20 MIS MISSION OF ON OF THE HE FOUND FOUNDATION ON Support and enhance Catholic Education in the Archdiocese of Philadelphia. Our goal is to leverage the EITC and OSTC
➢Support and enhance Catholic Education in the Archdiocese of Philadelphia. ➢Our goal is to leverage the EITC and OSTC programs, allowing us to maintain and increase the enrollment at all the Elementary and High Schools. ➢To achieve our goal, the successful solicitation, communication and distribution of EITC and OSTC funding is critical to the Catholic Schools in the Archdiocese of Philadelphia.
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Opportunity Scholarship Tax Credit
➢ 35 Million Available at the State ➢ Tuition Assistance K-12 ➢ Students residing within a low achieving school district. A low achieving school is defines as ranking in the bottom 15% ➢ Same income requirement as EITC ➢ Family must apply through FACTS
Educational Improvement Tax Credit
➢ 85 Million Available at the State ➢ Tuition Assistance K-12 ➢ Eligibility: $100,608 Maximum Income ➢ 15,608 for every additional child ➢ Family must apply through FACTS Family of 4: $116,216 Family of 5: 131,824 Family of 6: 147,432
Businesses
Individuals with a tax liability can now join a Special Purpose Entity (SPE) to take full advantage of the PA EITC programs.
➢ Use the Credit for Your Personal PA Taxes ➢ 90% Tax Credit for a 2-Year Commitment ➢ Currently Recruiting Members ➢ $1,000 Minimum Contribution ➢ Designate to a Catholic School of Your Choice
September 11, 2019
PA businesses can contribute up to $750,000 to the program. C-Corps, S-Corps, LLCs and Limited Partnerships are eligible to participate.
➢ Available to Those Who Do Business in PA ➢ Receive a 75% Credit for 1-Year Commitment or 90% Credit for 2-Years New Businesses Can Apply by July 1st ➢ Designate to a Catholic School of Your Choice
Individuals
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➢ The SPE 2019-20 program, is an LLC that the Foundation has created to allow individuals to now participate in the EITC/OSTC programs. ➢ The sole purpose of the SPE is to: direct EITC/OSTC funds to families sending their children to our Catholic schools. ➢ The Catholic Education, LLC 2019-20 is made up of many individuals who want to support Catholic Education. ➢ The Foundation for Catholic Education will apply on July 1, 2019 for the SPE. ➢ SPE Members receive a 90% PA Tax Credit for a Two Year Commitment if approved by the State. What is SPE SPE 2019-20? 20?
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90% Tax Credit
SPE 2018-19 Scenario:
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SPE 2018-19 Sc Scenari rio (With thholding):
$179,000 $185,000 $470,000 $547,000 $881,550 $1,125,000 $1,225,000 $3,150,000
$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Start of the SPE’s 257% Increase in One Year!
EITC and OSTC Programs: ➢SPE # 1: Approved for $255,500 in OSTC ➢SPE # 2: Received $655,215 in EITC ➢SPE # 3: Received $833,300 in EITC ➢SPE # 4: Received $755,117 in EITC ➢Businesses: $500,000 in OSTC/EITC
SPE 2019-20: Critical Dates
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May / Jun July October November Decemeber February Feb/Mar April / May June / July Individuals
Commits to SPE Writes Check to SPE Receives 2019 PA K-1 reflecting SPE tax credit Files tax return and utilizes SPE credit
SPE
Applies to State for Education Credits Notification of SPE Credit Contribution to Foundation and Notification to State 2018 Tax Return Completed and produces K-1's
State
State Awards SPE Educational Credits State acknowledges SPE Contribution
Foundation
Receipt of SPE Contribution Distribution of tuition assistance Schools across the Archdiocese
Schools
Receipt Tuition Assistance from Foundation Allocations Tuition Assistance to Students/Families
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