EDUCATIONAL IMPROVEMENT TAX CREDIT
A new opportunity for individuals to participate
The Commonwealth of Pennsylvania has a special program in place that helps individuals support programs for education. Instead of paying taxes to the Commonwealth, qualified investors may be able to redirect their taxes to an approved organization like Settlement Music School, and receive a 90% tax credit – or more!
Two LLCs (Limited Liability Companies) have been formed as Special Purpose Entities (SPEs) to support Settlement’s two EITC-eligible programs, Kaleidoscope Preschool and Music Education Pathways.
who qualifies to participate?
In order to qualify as partners of these SPEs, individuals must be “qualified investors”:
- Personal income over $200,000 (or $300,000 if Married Filing Jointly) in each of the prior 2 tax years and reasonably expect the same for the current year; or
- Net worth over $1M (not including primary real estate); or
- Trustee acting for a Trust worth over $5M.
Eligible Settlement Programs:
· Music Education Pathways – a sustained afterschool music program at six Philadelphia schools that offers students four hours of music and academic instruction per week, regular performance opportunities, and a total of 130 hours of programmatic activities over the school year.
· Kaleidoscope Preschool Arts Enrichment Program – a nationally renowned Head Start program that fully integrates the arts into every aspect of the curriculum; serves 115 students from two low-income communities.
A qualified individual can receive at least a 90% state tax credit and may also qualify for a federal charitable deduction, dramatically decreasing the participant’s tax bill. The minimum contribution from those that qualify is $2000 in each of two consecutive years.
How do I participate?
Once the SPEs are notified in Fall 2017 of available tax credits, potential participants have 60 days to join the partnership and make a financial commitment. Participants are expected to make a two-year commitment to support Settlement through the SPE.
For more information, please contact Amelia Schmertz, Chief Advancement Officer, via email or call 215.320.2682.