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EITC

WHO WE ARE

The Foundation for Jewish Day Schools, 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 Jewish-content education for public school students.

GREAT NEWS!

BUSINESSES & INDIVIDUAL TAX PAYERS CAN PARTICIPATE IN THIS PROGRAM

By participating in the Pennsylvania 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 and 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 attending Jewish day schools and pre-schools through the Foundation for Jewish Day 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 Jewish-content curriculum provided to public school students, such as the education provided through the Youth Symposium on the Holocaust, a JCRC sponsored program.

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 state tax liability for up to $2.250M by making contributions to the Foundation for Jewish Day Schools.  Note:  There is no minimum tax liability or tax credit required of a business participant.

For businesses seeking to submit an application, please adhere to these dates.  If you submit on even just one day earlier, your 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 16, 2016 as a renewing participant (either the 1st year of a new 2 year commitment or the 2nd year of a 2 year commitment).  Participation in the program must be continuous in order to submit your application on May 16th.
  • July 1, 2016 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.

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 Schools currently participating in EITC/OSTC through the Foundation for Jewish Day Schools, please navigate the link on the left side of this page.

 

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

INDIVIDUALS

  • A recent change in the law 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 interested in supporting the Foundation for Jewish Day Schools, 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 $6,500. Those participating at a lower amount will need to consult a professional to create the 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 tax deduction. 
  • For anyone interested in participating in the EITC program using their personal tax liability, please contact Jewish Scholarship LLC.
  • 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 people will need to engage with an SPE (JSLLC if they would like) or form their own individual 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 2015-2016 school year the Foundation for Jewish Day Schools has awarded well over $4.8M in needs-based scholarships enabling almost 700 students from low- and moderate-income homes to attend a Greater Philadelphia Jewish day school. The Foundation also awarded over $500,000 in scholarships to over 200 pre-school students from low- and moderate-income households.
 

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