Any business that pays Pennsylvania taxes and any individual who pays $3,500 or more in Pennsylvania state tax is eligible to participate in the Educational Improvement Tax Credit (EITC) Program. This program allows individuals and businesses paying taxes in Pennsylvania to redirect a portion of their state tax payments to approved scholarship organizations such as Grier School. Presently 13 states participate in the EITC program. Central Pennsylvania Scholarship Fund awards 50 million scholarship dollars to students from 500 schools. Previously both boarding & day Grier students from Pennsylvania benefited from this program.
The entire donated amount supports Grier School scholarships. You can receive a 90% tax credit on the donated amount & claim the remaining 10% on your federal taxes (at a tax rate of 37%) as a charitable donation. For example, someone can make a $3,500 gift to Grier School through EITC, for an out-of-pocket cost of $130. Other amounts can be larger such as $100,000 or more following the same percentages. The process is a simple one-page joinder agreement & takes approximately five minutes to complete.
To maximize the tax credit benefit, typically it works best to review the liability paid on line 12 of form 40 or 41 of your prior-year tax return & pledge the liability paid on the joinder agreement
. If needed, consult with your tax preparer.
For more info check out our EITC FAQ
Please feel free to contact Kelly Aharrah, Assistant Director of Admissions firstname.lastname@example.org
or 814-684-3000 x7037 about program details.