We have an incredible opportunity for certain eligible individuals and business owners to receive up to a 90% tax credit for contributions to the Educational Improvement Tax Credit (EITC) program by joining a Special Purpose Entity (SPE). Here are some important things to understand about this SPE opportunity.
SPE Enables Qualified Investors or Business Owners to Multiply the Impact of Their Contribution by 10 TIMES.
Imagine this – a gift of $500 out of pocket can result in a $5,000 EITC contribution to help students afford Covenant! A $1,000 contribution can result in $10,000! And so on. And when you take into consideration your federal tax return, the effect is even greater.
Another way to look at this is: SPE enables qualified investors to receive a 90% tax credit on their PA tax liability for a contribution to help students afford Covenant (or any private school of their choice).
Consider this example:
Jill Taxpayer owes $4500 in PA taxes. She joins the SPE and makes a contribution of $5,000. She will then receive a 90% tax credit on her SPE contribution, which will result in a $4500 tax credit that reduces her PA tax liability to zero. Thus, in effect, since Jill Taxpayer has to pay her $4500 PA taxes no matter what, it has cost her $500 out of pocket to re-direct the entire amount of her PA tax liability to the school of her choice, resulting in a $5,000 EITC scholarship for students at the school.
Please Help Us Find More Qualified Investors and Business Owners
We are looking for individuals or businesses who pay at least $3,500 in Pennsylvania taxes.
Investors also need to have an income of $200,000 / year or a net worth of $1,000,000. (We just learned that the income qualification has been removed!) It is also possible for certain corporations, partnerships, insurance companies and banks to participate. If you, or someone you know meet this criteria, please contact Covenant’s Director of Development, Peggy Frantz, as soon as possible. (Peggy.Frantz@DiscoverCovenant.com)
Even if you are not a qualified investor yourself – you may know someone who is. Please help us to meet people who are eligible and eager to participate in this program!
You can learn more about this program by reading this SPE INFORMATIONAL DOCUMENT or this FAQ Sheet that we have prepared.
The EITC / SPE Program Could Provide Immense Benefit to Covenant Families for Many Years.
Fully funding our financial aid awards through EITC / SPE contributions could benefit Covenant families in the following ways:
- Enable the school to offer increased financial aid awards to more families.
- Free up other funds to help the school more quickly pay down our debt on the Dunlap Center.
- As participation in SPE is for 2 years at a time, the school will know in advance that funding is in place and will therefore be better able to plan effectively and to offer enhanced awards to families.
- By increasing our funding for financial aid and indirectly helping us to pay down our debt, SPE should help us to keep our tuition costs as low as possible for everyone.
- Once an investor joins the SPE they should be able to continue renewing every two years indefinitely – so SPE could potentially become a long-term blessing to our school and its students.
Please contact Covenant’s Director of Development, Peggy Frantz, if you have any questions or if you want to participate in the SPE program.
Please Note: The school is not able to offer professional tax advice. Please consult with your own tax professional to determine whether this program is right for you.