Tax Credits to Support Early Childhood Education
What is the Educational Improvement Tax Credit (EITC) program?
Through the EITC-Special Purpose Entity program, individuals who owe Pennsylvania State taxes can join a limited partnership established specifically to provide scholarships to eligible schools. Participating in this partnership triggers a 90% PA income tax credit — a terrific way to fund arts education at Settlement while simultaneously reducing your tax burden. IT’S A WIN-WIN!
CHILDREN IN NEED: When you participate in an eligible Special Purpose Entity (SPE) in support of Settlement, your gift supports the Kaleidoscope Preschool Arts Enrichment Program, our award-winning arts-integrated preschool.
- Kaleidoscope is a nationally-renowned, full-day program that serves 113 students from low-income communities.
- 88% of our students are eligible for Head Start, qualifying them for free tuition.
- Our scholarly research has proven that our arts-integrated curriculum prepares children more effectively for Kindergarten than peer programs without arts-based curricula.
- Financial aid needs are high: we require more than $500,000 annually from individual, corporate, and foundation support to ensure our families have access to this extraordinary program.
YOU: When you give through EITC, you dramatically decrease your tax bill. Exactly how much you save depends on your individual situation. Remember, however, that a tax credit is always better than a tax deduction.
Example savings on a $10,000 gift*
|With no tax credit||With 90% tax credit|
|PA tax credit||—||$9,000|
|Federal tax rate||35%||35%|
|Federal tax savings||$3,500||$350|
*Gifts can range from a minimum of $3,500 to more than $50,000.
CENTRAL PA SCHOLARSHIP FUND (CPSF)
You must earn a minimum of $115,000 in state taxable income — either individually or together if Married Filing Jointly.
For either individuals or couples who are Married Filing Jointly, at least one participant must work for a business, own a business, or own stock in a Pennsylvania-based company.
The minimum contribution is $3,500 in each of two consecutive years.
SETTLEMENT MUSIC SCHOOL PRE-K SCHOLARSHIP COLLABORATIVE, LLC
You must have earned a minimum of $200,000, or $300,000 if Married Filing Jointly, in each of the prior two tax years, and reasonably expect the same for the current year. OR…
You must have net worth of over $1 million (not including primary real estate). OR…
You must be a trustee acting for a trust worth over $5 million.
The minimum contribution is $2,000 in each of two consecutive years.
How do I sign up?
To learn more about giving through EITC, please email Chief Advancement Officer Amelia Schmertz at email@example.com.
Please consult your tax adviser to make sure this offer is right for you.