EITC

Any individual or business paying PA state tax, including those working for non-profits and retirees can participate.

To provide tuition assistance to current and future Archē students, making a Christian education a reality.

Participants can donate a minimum of $1,000 up to a maximum of $750,000.

There is no fee to participate in the EITC program. In the fall, you will send your donation to the SPE you selected.

A Special Purpose Entity (SPE) is a limited liability company established to access tax credits offered through the EITC program. Archē Classical Academy partners with two SPEs: The Central PA Scholarship Fund (CPSF) and The ACSI Children’s Tuition Fund of PA (CTF).

A Joinder Agreement is a one-page document that allows a donor to join an SPE. By filling out this form, you can designate that your donation goes to Archē Classical Academy. Additional details on the Joinder Agreement can be found on the Central PA Scholarship Fund (CPSF).

Yes, you can participate in an SPE if you own an S Corporation, General Partnership, Limited Partnership, or Limited Liability Company (LLC). Owners participate as individuals using their social security numbers. The business can write the check on behalf of the owner, claiming 100% of the donation as a deduction on the federal side, while owners claim a 90% credit on the Pennsylvania side. If the business sends the check, please include the owner’s name(s) in the memo line.

Yes, retirees can participate in an SPE if employed by or own a for-profit company or file taxes jointly with a spouse who meets these criteria. A new ruling also allows individuals employed by a non-profit to participate if they own stock in a business in Pennsylvania. According to Article XX-B of the Public School Code of 1949, any entity authorized to do business in Pennsylvania and subject to specific taxes qualifies, including pass-through entities whose members are owners or employees of other business firms.

Each dollar allocated to the EITC program is a credit. Applications are accepted and processed until the available credits are depleted.

The United States tax code allows certain entities to utilize pass-through taxation, which shifts the income tax liability from the entity to its beneficiaries. Schedule K-1 reports the amounts passed through to each party with an interest in the entity, commonly known as pass-through entities.

There is no specific deadline for participating in an EITC program through a Special Purpose Entity (SPE). However, applying early is recommended since tax credits are distributed on a first-come, first-served basis until they are depleted.

• January – November | Complete the Joinder Agreement.
• August – November | Send your contribution to the SPE.
• January – February | Receive your Schedule K-1 Form and file it with your PA state taxes.
• July – September | Receive your tax refund, depending on when you file.

Keep the Cycle Going! Set your refund aside and contribute it next year!

Participants are encouraged to reinvest each year. If you fail to do so, you will be able to submit a new Joinder Agreement. Once in the program, you have the first right of refusal to participate again, which means you are almost guaranteed to receive credits.

On your application form, specify the school you wish to support in the designated space for the school’s name and indicate the amount you would like to redirect to that school.

Federal and state K-1 forms will arrive in February of the following calendar year. The Federal K-1 will list your participation and Federal charitable contribution, which you can deduct on Schedule A if you itemize. Your Pennsylvania K-1 will list the amount of your PA tax credit (90%-100%), which will go on Payment line 23 OC for Other Credit on your PA-40.

95% – 100% of your contribution goes to the school of your choice for scholarship purposes.

The program allows donations to be directed to the private school of the donor’s choice, not a specific student.

EITC Eligibility: A student is eligible to receive financial aid through EITC if the household income does not exceed $108,444 plus $19,088 per dependent child. For example, a family with two children can have a maximum income of $146,620.

Parents complete a financial aid application through FACTS. After completing the admissions application, you will receive a link to complete the financial aid application. Financial aid availability is contingent upon the receipt of EITC funds. Scholarships are typically awarded and applied to students’ tuition in May for the upcoming school year.