If you could direct your taxes back to your community 
and make a difference in a child’s life, wouldn’t you?

Choose exactly where your taxes go.

In Pennsylvania, the Educational Improvement Tax Credit (EITC) program allows you to do just that.  If you pay state taxes in Pennsylvania, you can make a contribution to Kentucky Avenue School and receive 90% of that contribution back in the form of a tax credit.  It costs a dime to give a dollar.  

Funds from EITC go directly to our need-based financial aid program, supporting students who would otherwise not be able to afford Kentucky Avenue School.  Working together with local business partners and individual donors, we can achieve truly remarkable things in our school, our community, and our city.  

Why contribute?

Benefits for KAS

Your support can make a real difference in enhancing educational opportunities for all students, irrespective of their socioeconomic status or background. By contributing to the EITC program, you’re investing in the future of our community and empowering the next generation to thrive.

It’s a tangible way for the KAS community to ensure that every child has access to a KAS education. Funds from EITC go directly to our need-based financial aid program, supporting students who would otherwise not be able to afford Kentucky Avenue School. School funds, that would have gone to scholarships, are freed up to provide resources and opportunities that benefit all students.

Tax benefits for you

You can also receive substantial tax benefits. This includes a Pennsylvania tax credit of 90% of your donation for a 2-year commitment. For individuals, the remaining 10% can be a charitable donation deduction on your Federal tax return. Businesses may be able to claim 100% of your donation as a deduction on your federal taxes.

Please consult with your Tax Professional before donating to understand your full benefits.

Example Individual Contribution

Taxes

PA Taxable Income

$130,000

PA Tax Liability (3.07%)

$3,991

EITC Donation

$3,900

PA Tax Credit

$3,510

Federal Charitable Deduction

$86

COST

Cash Donation

$3,900

Combined tax savings

-$3,596

Final Cost to Donor

$304

KAS receives

$3,900

Example assumes a couple Married Filing Jointly in the 22% marginal income tax bracket who elect to itemize deductions.

Quick Definitions

EITCEducational Improvement Tax Credits are tax credits to eligible businesses and individuals contributing to fund scholarships for Pennsylvania students. More here.

SPESpecial Purpose Entity is an organization that handles much of the paperwork for individuals and businesses applying for EITC. More complete definition in the FAQ below.

How it works.

Graphic depicting how PA EITC works
Can I participate?

Businesses must pay one or more eligible Pennsylvania taxes. Those that qualify may complete an online application each year to the Department of Community and Economic Development or join an SPE

Awards are received on a first-come, first-served basis and within 60 days, the contribution must be made to an approved educational organization.  A business owner who applies for participation directly to the state of PA (C-Corp, LLC, LLP, etc.), may also be eligible to participate as an individual through an SPE.   

Qualifying Pennsylvania business include:
  • S Corporations
  • C Corporations
  • General Partnerships
  • Limited Partnerships
  • Limited Liability Companies (LLC)
Eligible Taxes
  • Personal Income Tax 
  • Capital Stock/Foreign Franchise Tax 
  • Corporate Net Income Tax 
  • Bank Shares Tax 
  • Title Insurance & Trust Company Shares Tax 
  • Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine) 
  • Mutual Thrift Tax 
  • Malt Beverage Tax
  • Retaliatory Fees under section 212 of the Insurance Company Law of 1921

Individuals/households with an annual income of $115,000 and a PA personal income tax liability of $3,500+ annually can qualify for this program.  Check line 12 of your PA Income Tax Return to confirm your PA Tax Liability amount.  

For individuals or couples (married filing jointly), one must work for a business, own a business, or own stock in a company that does business in the state of Pennsylvania.  Individuals may live outside of PA and still participate if they own such stock.  You must have PA State Tax Liability.  

Retirees may own a small business (receive an annual K-1 form), work for a business (receive an annual W-2 form), or own stock in a company that does business in the state of PA.  Some retirees qualify due to side jobs or residual ownership of businesses and some do not.  We can help you confirm your qualification status.  Retirees may live outside of PA and still participate if they own stock in a company that does business in the state of Pennsylvania.  You must have PA State Tax Liability.  

Where do I join an SPE?

Central Pennsylvania Scholarship Fund works with individuals and businesses to help them join an SPE and donate to Kentucky Avenue School. Visit their site for contact information or ask KAS to put you in touch.

Spread the word!

Would your employer, friends, or family like to support KAS? Send them to this page, or download and print/send one of our overview sheets.

Frequently Asked Questions

EITC began in 2001 and is utilized annually by many PA schools. You will not be asked to send your donation until you have been approved for the tax credits, guaranteeing that you are able to participate and receive the tax benefit.

It’s a tangible way for the KAS community to ensure that every child has access to a KAS education. Together, through your contributions to the EITC program, we can truly make a positive impact on education and create a brighter future for all our students.

Your support can make a real difference in enhancing educational opportunities for all students, irrespective of their socioeconomic status or background. By contributing to the EITC program, you’re investing in the future of our community and empowering the next generation to thrive.

An SPE is a class of pass-through partnership that that exists solely for the purpose of obtaining Education Improvement Credits.

The SPE allows the PA tax liability to flow through it for the purpose of participating in the EITC program and makes the application to the Commonwealth on behalf of the members. 

Randy Tarpey, a Certified Public Accountant, established the Central Pennsylvania Scholarship Fund in September 2011. Following 2014 tax reforms, he established the Central Pennsylvania Special Purpose Entity in August 2015.

The SPE was founded with the aim of assisting independent schools by providing individuals who do not qualify to receive credits directly from Pennsylvania with the chance to receive the same tax benefits.

Applications may be submitted at any time during the year. Tax credits will be distributed on a first come first served basis until the tax credits which have been awarded to all SPE’s by the Department of Community and Economic Development are depleted. 

There are typically two rounds, in the Spring and Fall, and once the credits have been depleted you will not be able to participate until the next round. It is best to get your donation in early!

The SPE will request your donation once you are approved. They will provide instructions for filling out and sending the check at that time.

All donated funds are held in an FDIC-insured brokerage account until distributed to the school.

On your application form, indicate Kentucky Avenue School in the space designated for Name of School, and indicate the tax credit amount for which you are applying in the place designated Amount $

All of it! 100% of your contribution goes to KAS to be used for scholarships. The Central Pennsylvania Scholarship Fund is a charitable institution and no portion of your donation is used for administrative purposes. 

It really couldn’t be easier.  To get started, or for additional questions:

Contact Sherry Wolfe at sherry.wolfe@kentuckyavenueschool.org or 412-361-5332.