Text Size:

EITC

WHO WE ARE

The Foundation for Jewish Day Schools (Foundation), created by the Jewish Federation of Greater Philadelphia in partnership with the regional Jewish day schools, is an IRS-recognized 501(c)(3) non-profit organization, whose mission is to provide needs-based school scholarships, with an expanded opportunity to support enhanced curriculum content for public school students.

DOWNLOAD THE EITC BROCHURE

GREAT NEWS!

BUSINESSES & INDIVIDUAL TAX PAYERS CAN PARTICIPATE IN THIS PROGRAM

By participating in the Commonwealth of Pennsylvania's Educational Improvement Tax Credit (EITC) program, businesses and individuals will not only know where their tax dollars are going, they will also decide how they are being spent, all while supporting Jewish education in our community.

Individuals and business owners can participate in any or all of four distinct tax credit programs that support education.

Three of the programs, EITC (SO), Pre-K (PKSO) and OSTC provide needs-based scholarships to lower and moderate-income families which the Foundation directs to support students attending Jewish day schools and pre-schools:

  • EITC (SO) – Education Improvement Tax Credit for grades K-12
  • Pre-K (PKSO) – Pre-K Education Improvement Tax Credit program for Pre-K programs
  • OSTC – Opportunity Scholarship Tax Credit for grades K-12

The forth program, EIO (Education Improvement Organization) supports enhanced curriculum content provided to public school students, such as programs provided through the Youth Symposium on the Holocaust, a JCRC sponsored program; several immigrant and tolerance focused programs sponsored by the National Museum of American Jewish History, and career oriented programs provided by JEVS Human Services.

HOW THE PROGRAM WORKS

BUSINESSES

Businesses that pay taxes to the Commonwealth complete a simple online application to participate in one or more of four educational tax credit programs.   Upon approval, the taxpayer can receive a credit for between 75% - 100% of their Pennsylvania state tax liability (taxes owed) for up to $2.250 million by making contributions to the Foundation.  Notes: 1) 2 year commitment, at a 90% tax credit each year are preferred, and 2) There is no minimum Pennsylvania annual tax liability or tax credit required of a business participant.

For businesses seeking to submit an application, please adhere to these dates.  If submission is made just one day earlier, the application will be denied as the state will read it as applying for the previous year and those funds have already been spoken for:

  • May 15, 2017 as a renewing participant (either the 1st year of a new 2 year commitment or the 2nd year of an existing 2 year commitment).  Participation in the program must be continuous in order to submit your application on May 15th.
  • July 1, 2017 as a new participant – also if your business is returning from a hiatus in participation.  If you submit any time after July 1st, you will most likely not be approved this year as the last of the funds are usually distributed to July 1st applicants. (Note: Since July 1st falls on Shabbat this year, for those observing, the application can be made until midnight.)

HELPFUL FORMS WHEN MAKING YOUR ONLINE APPLICATION:

DOCUMENTS REQUIRED BY THE FOUNDATION FOR JEWISH DAY SCHOOLS WHEN MAKING YOUR CONTRIBUTION

For a list of Jewish day and pre-k programs currently participating in EITC/OSTC through the Foundation, please navigate the link on the left side of this page.

 

All contributions submitted to the Foundation must also be accompanied by a copy of the DCED approval letter.

INDIVIDUALS

  • It is a recent change in the law that allows individual PA taxpayers to participate in Pennsylvania’s EITC program. Pennsylvania has expanded the definition of a business to include a Special Purpose Entity (SPE).  The sole and only purpose for an SPE to exist is for individuals’ PA personal tax liabilities to flow through it so these individuals can participate in the EITC program.  An individual must become a member of an SPE in order to use their personal tax liability for EITC program participation, and it is the SPE which makes the actual application to the state.
  • To make it easy for those individuals interested in supporting the Foundation, which supports Jewish pre and day schools in the Philadelphia area, a Special Purpose Entity has been created on behalf of the Foundation called Jewish Scholarship LLC (JSLLC).  JSLLC will provide guidance on this process for those contributing a minimum of approximately $6,200. Those participating at a lower amount will need to consult a professional to create an SPE.
  • Who qualifies to participate as an individual?  This means W-2s, consultants, shareholders, partners or members of large firms, and some retirees,…most anyone can use their PA personal taxes to secure a state tax credit and federal charitable tax deduction. 
  • For anyone interested in participating in the EITC program using their personal tax liability, please contact Jewish Scholarship LLC at jewishscholarshipllc@gmail.com.
  • NOTE:  Those who pay business taxes to PA are defacto eligible and do not need a Special Purpose Entity. They should apply to the state using their business entity as indicated above.  LLC, LP, S-corp, C-corp and Partnerships are approved  entities by the state.  Sole proprietors are not approved entities for the purposes of the EITC program and these individuals will need to engage with an SPE (JSLLC if they would like) or form their own LLC in order to participate in the EITC program.  ​

THE DIFFERENCE WE HAVE MADE THIS YEAR

Thanks to the EITC program, and the generosity of business and individual donors, for the 2016-2017 school year, the Foundation has awarded well over $5.8 million in needs-based scholarships enabling over 700 students from low- to moderate-income homes to attend a Greater Philadelphia Jewish day school. The Foundation also awarded over $600,000 in scholarships to more than 200 pre-school students.
 

If you have any questions regarding the EITC program, please contact Ellen Horowitz Matz, Educational Tax Credit Officer at (215) 832-0525 or ematz@Jewishphilly.org.