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Educational
Improvement Tax Credit (EITC)
Grant Applications -
Please click
below for the interactive 2009-2010
BLOCS Educational Improvement Tax Credit (EITC) Application. Completed
applications are to be sent to Private School Aid Service (PSAS)
and postmarked no later than Monday, March 23, 2009. No applications
or required application documentation are to be sent to the BLOCS
Office. Doing so will only prolong the processing of your application.
If you should have any questions regarding the processing of your
application or required application documentation, please contact
PSAS at (440) 892-4272 or visit their website at www.psas.org.
Packets of
BLOCS EITC Applications will NOT be mailed to schools within the
Archdiocese of Philadelphia this school year and in the future.
They are available on this website for schools to print and distribute
and for individual families to print.
Families with
one child and a household income of $60,000 or less qualify. An
income allowance of $10,000 is allowed for each additional child
and dependent member of the household.
 To view PDF files,
you need Adobe Acrobat Reader©. For more information or to
install this free software, visit the Adobe
Acrobat Reader© website.
Frequently
Asked Questions
What
Are Educational Improvement Tax Credits (EITC)?
A
tax credit for businesses that make a donation to a Pre-K or K-12 Scholarship
Organization. Scholarship Organizations will award scholarships
to children across Pennsylvania to assist them in attending
the schools of their choice.
What
Families, Businesses and Scholarship Organizations Qualify?
- Families with one dependent and a household income of $60,000 or
less qualify. An income allowance of $10,000 is allowed for
each additional child and dependent member of the household.
- Businesses that pay various Pennsylvania business taxes.
- Scholarship
Organizations must be a non-profit, IRS recognized 501(c)(3)
and distribute at least 80% of their annual receipts to eligible
students for scholarships. The Scholarship Organization must
also register with the PA Department of Community and Economic
Development (DCED) by showing proof of its 501(c)(3) status.
How
Do They Work?
- Businesses apply to the DCED for the tax credit. If the scholarship
fund is registered with the DCED and there is money available
in the program, tax credits will be awarded on a first-come,
first-served basis.
- For donations
to K-12 Scholarship Organizations, the tax credit is a 75% credit
(against taxes owed). However, if a business provides a written
two-year commitment of equal funding, the tax credit becomes
90%. Tax credits may not exceed $300,000 annually per business
for donations made to K-12 Scholarship Organizations.
(There is a $44,666,667 annual cap on the total amount
of tax credits available for donations to K-12 Scholarship Organizations.)
- For donations to Pre-K Scholarship Organizations, the tax credit is a 100% credit (against taxes owed) of the first $10,000 of the contribution; a 90% tax credit for any additional amount contributed up to $150,000 annually per business. (There is a $8,000,000 annual cap on the total amount of tax credits available for donations to Pre-K Scholarship Organizations).
- Businesses must make their contributions within 60 days
of approval from the DCED.
- Each Scholarship Organization may establish rules and
guidelines for eligibility (in addition, but not in conflict,
to the guidelines already established by law)
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