Instead of Sending Your State Tax Dollars to Harrisburg, Use Them to Give the Gift of Catholic Education

Fund need-based scholarships for Philadelphia-area families seeking a Catholic school education for their children and receive a 90% state tax credit through the Educational Improvement Tax Credit.
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Turn Your Pennsylvania State Tax Dollars into Catholic School Scholarships

Fueled by donors like you, the Educational Improvement Tax Credit (EITC) gives children in and around Philadelphia access to a Catholic school education — regardless of household income.

In return, donors that commit to the EITC receive a Pennsylvania state tax credit of up to 90% and likely a federal tax deduction of up to $120.

Here’s an Example

Say your annual household income is $300,000. 

Your Pennsylvania state tax liability is approximately $9,210. 

With a yearly* EITC donation of $5,000 to IMS… 

  • IMS receives $5,000
  • You get a state tax credit of $4,500 (90% of $5,000) and likely a federal tax deduction of $120 for a total out of pocket cost of just $380. 

 

*A two-year commitment is required. 

 

You Decide How Your PA Tax Dollars
Are Put To Work

By participating in the EITC program with IMS, you are supporting the most in need at all of our schools in and around Philadelphia including: 

 

  • St. Barnabas
  • SS. Cyril & Philomena
  • St. Frances Cabrini
  • St. Helena-Incarnation
  • Holy Cross
  • St. Malachy
  • St. Martin de Porres
  • St. Martin of Tours
  • Our Mother of Sorrows/St. Ignatius of Loyola
  • St. Raymond of Penafort
  • St. Rose of Lima
  • The DePaul Catholic School
  • St. Thomas Aquinas
  • St. Veronica

For anyone looking to further the mission of Catholic school education in Philadelphia in an incredibly tax advantageous way, the EITC program through IMS is it. There is zero downside and nothing but potential.

Chris Curran | President, Essent Guaranty

EITC Participating Donor since 20XX

Becoming an EITC Donor is Easy

Step 1: Determine Your Tax Liability
Check line 12 of your most recent Pennsylvania state tax return. If that amount is ___________, you’re eligible to participate in the EITC program.

STEP 2: Connect with an IMS Team Member
They’ll detail the process and get you signed up. 

STEP 3: Write Your Check
Once enrolled, you’ll write the check to Independence Mission Schools.

STEP 4: Receive a K-1  
Come tax time, IMS will issue you a K-1 that you’ll include in your next tax return. This K-1 will trigger up to a 90% tax credit with the state.

Frequently Asked Questions

What is the Educational Improvement Tax Credit (EITC) program?

The Educational Improvement Tax Credit Program was developed within the Pennsylvania Department of Community and Economic Development in 2001. 

Fueled by donors like you, the Educational Improvement Tax Credit (EITC) gives children in and around Philadelphia access to a Catholic school education — regardless of household income.

In return, donors that commit to the EITC receive a Pennsylvania state tax credit of up to 90% and likely a federal tax deduction of up to $120.

 

Can businesses participate in the EITC program?

Yes! The Educational Improvement Tax Credit (EITC) is available to businesses authorized to do business in the Commonwealth of Pennsylvania that are subject to certain taxes including:

  • 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 unauthorized, domestic/foreign marine)
  • Mutual Thrift Tax
  • Malt Beverage Tax
  • Surplus Lines Tax

Businesses can apply to receive a tax credit of 75% of their contributions, up to $750,000. If a firm makes a two-year funding commitment, for the same amount in both years, the tax credit can be increased to 90%.

How long is the commitment?

EITC donors are required to participate in the program for two consecuitve years. There are no enrollment limits.

What if I think this program sounds too good to be true?

You wouldn’t be the first! The Educational Improvement Tax Credit Program was developed within the Pennsylvania Department of Community and Economic Development in 2001. Oftentimes, individuals and businesses are not familiar with it simply as a result of a lack of awareness and publicity. Rest assured, the Educational Improvement Tax Credit Program is as valid as it is life-changing. If you’e still skeptical, we always encourage our potential donors to consult with their tax professional.

Once I participate in the program, how do I renew the following year?

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Are there downsides to participating?

The only downside – if you want to call it that – is that donors must make their gift first and then, come tax refund time, they’ll receive up to a 90% credit from the Pennsylvania Department of Revenue. 

Who or what is eligible to participate in the EITC program?

Individuals who pay Pennsylvania income taxes and businesses that are authorized to do business in Pennsylvania 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 Company Shares Tax
  • Insurance Premium Tax (excluding unauthorized, domestic/foreign marine)
  • Mutual Thrift Tax
  • Malt Beverage Tax
  • Surplus Lines Tax

 

Can I designate my EITC gift to a specific IMS school?

Yes! EITC particpants can direct their gift to one, some or all IMS schools. Donors can also instruct IMS to apply their gift where there is the greatest need. 

Can a donor that received a state tax credit through EITC still take a charitable deduction for their donation on both their state and federal tax returns?

What is the timing of when we have to make our contribution and what is the approval process?

Any new donor can apply for tax credits starting July 1 for the current year.

How soon will my gift be distributed?

Donations received prior to June 30 will be allocated for the fall semester of that school year. Monies received after July 1 will be distributed for fall of the following school year.

Get in Touch with an IMS EITC Specialist

We can’t wait to get you involved.