EITC

CHRISTIAN EDUCATION IS A BIG SACRIFICE!

And most people have little to no idea about the Pa EITC program and how it can transform the lives of students, families, and our communities!

SO LET’S LEARN!!

Before we dive into the details about the EITC program, consider this:

  • There are 251 unique families at LCA
  • PA State Income tax is 3.07% of your income. Participants are able to give up to the full amount of their tax liability.
  • If we modestly assumed that each family had a combined income of $50,000/year, they would be eligible to contribute $1,500 to the EITC program.
  • If each family participated using these figures, LCA would have a $376,500 scholarship fund just from it’s immediate families.
  • If each student/family were eligible to receive scholarship funding and equal parts were given out, that would be $1,158 per student in scholarships.

THIS IS OUR VISION!!!

AND IT’S ABSOLUTELY ACHIEVABLE!

PROGRAM
OVERVIEW

The PA Educational Improvement Tax Credit program allows individuals, businesses, and business owners the ability to redirect their state income tax liability for the purpose of funding scholarship dollars at a non-public school like LCA. Participants can receive a 90% tax credit on a two-year commitment to the program.

HERE IS WHAT THAT LOOKS LIKE:

EITC FAQs

WHO IS ELIGIBLE?

Individuals/Families are eligible if one spouse works at a for-profit company located in PA (which is most of us) and has a PA state income liability.
Businesses are eligible if they are located in PA and are subject to one or more of the following taxes:

Personal Income Tax; Capital Stock/Foreign Franchise Tax; Corporate Net Income Tax; Bank Shares Tax; Title Insurance & Trust Shares Tax; Insurance Premium Tax; Mutual Thrift Tax; Malt Beverage Tax; Surplus Lines Tax.

HOW MUCH CAN WE CONTRIBUTE?

The EITC program allows participants to contribute up to 100% of their PA Income Tax liability.
-Individuals earning $100,000/year have a $3,070 (3.07%) tax liability. They are able to contribute up that full amount.

CAN WE RECEIVE A DIRECT BENEFIT OR SCHOLARSHIP FOR PARTICPATING?

No. The EITC tax credit is considered a charitable donation. As such, you are not allowed to receive a direct benefit for your participation. HOWEVER, if you are eligible to apply for scholarships at LCA, then you could receive funding based on that eligibility, NOT because you contributed to the EITC.

CAN WE CHANGE OUR CONTRIBUTION AMOUNT IN YEAR 2?

Yes. Incomes change, especially when it comes to businesses! When you renew the second year’s participation you are able to lower/increase the amount you are contributing based on your new tax liability or comfortability.

HOW DO WE APPLY?

There is a one-page Joinder Form found below. It requires very basic information about yourself/business; the amount you wish to contribute; and to what school(s) you’d like to designate the funds to. Scan the completed form and send to Mr. Kappes.

WHEN DO WE APPLY?

You can submit a commitment form at any time, but the best time to apply is the end of summer/early fall.

LCA SCHOLARSHIP FAQs

WHO IS ELIGIBLE TO RECEIVE SCHOLARSHIPS?

There are a variety of scholarships with different parameters and guidelines. However, our most standard and robust sources of funding require the following:
– Family incomes under $108,444 plus an additional $19,088 per dependent.

HOW ARE SCHOLARSHIPS AND AMOUNTS DECIDED?

Individuals with higher financial needs are given preference. Amounts are determined via equations that consider our total amount of funding available, specific needs, and the amount of qualified applicants.

WHEN IS THE SCHOLARSHIP APPLICATION DEADLINE?

May 31st is the deadline for applications involving the upcoming school year.

WHERE/HOW DO WE APPLY?

Financial aid applications are found within the enrollment process once students have been accepted into LCA or have previously been enrolled.

APPLY

General Joinder Form

LEARN
MORE

Connect with Mr. Kappes

Development Director at LCA

Connect with Brad Reynolds

LCA Board Treasurer, CPA/CVA

breynolds@molinarioswald.com