Individual & Business Tax Credit Program Creates Scholarships
Over 75% of the students at SJC rely on scholarships to be able to attend our school. Many of their families are at or below poverty level, so these scholarships make all the difference in not only their lives, but also the lives of their families. Unfortunately, the demand for financial aid far exceeds the resources available. The good news is that the Special Purpose Entity (SPE) tax credit program is a game changer for our school.
SPE is a tax credit program available through the Eastern Pennsylvania Scholarship Foundation (EPSF). Both individuals and businesses can participate in this program. SJC WINS with needed scholarship money. YOU WIN with a 90% tax credit and the satisfaction of knowing you are helping a Catholic school community that works tirelessly teaching children with special needs.
Individual Tax Credit
Individuals/couples who participate in the program must be able to donate a minimum of $5,000 per year for a two-year period. To qualify, you must meet ONE of the following criteria:
-Individuals earning $200,000 or more a year
Couples earning $300,000 or more a year
-Individuals/couples having a net worth of $1,000,000, excluding primary residence
Business Tax Credit
If you pay a minimum of $5,000 in PA state income tax for your business, you can turn that into a $5,000 scholarship to benefit students at St. Joseph Center for Special Learning. PLUS, you will receive a $4,500 (90%) tax credit in return through the Special Purpose Entity.
To qualify as an accredited investor, as defined by the federal and state securities laws, business must meet one of the following criteria:
-A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity.
-A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended.
-An insurance company as defined in the Securities Act.
-A private business development company as defined in the Investment Advisors Act of 1940.
-A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or 301(d) of the Small Business investment Act of 1958.
-A corporation or partnership, not formed for the specific purpose of joining and becoming a Member of the Company, with total assets in excess of $5,000,000.
-A Massachusetts or similar business trust, not formed for the specific purpose of joining and becoming a Member of the Company, with total assets in excess of $5,000,000.
-A trust with total assets in excess of $5,000,000, not formed for the specific purpose of joining and becoming a Member of the Company.
-An entity in which all of the equity owners are Accredited Investors.
Program highlights include:
-This is a state program, not a federal program, so businesses/individuals will benefit only if they pay PA state income taxes.
-It is a two-year commitment, so consult with our tax preparer to estimate your PA income tax liability for a two-year period.
-Business firms are broadly defined as any profit legal entity authorized to do business in PA and subject to PA taxes, including corporations and pass through entities (Subchapter S, LLCs, etc.).
Owners can be accredited investors or corporate partnerships that have assets of $5 million. Other firms such as banks, financial firms and insurance companies have no asset requirements.
For more information regarding individual or business tax credits and how they can provide financial assistance to SJC families, please contact Monica Walborn, Director of Development, at firstname.lastname@example.org or (570) 622-4638.
This Zoom presentation explains the program listed above and how to qualify.