State Tax Credit Programs
Change the lives of children and families in your community by repurposing your tax dollars to support scholarships for Nazareth Prep students. Multiply your impact with a tax credit equal to up to 90% of your donation.
This information is not intended to serve as legal or tax advice. Please consult your financial or tax advisor.
What are Tax Credits?
Pennsylvania offers educational tax credit programs through the Department of Community and Economic Development (DCED). These tax credit incentives allow individuals and businesses to redirect their state tax dollars to invest in the education of underserved youth.
Types of Tax Credits
EITC (Educational Improvement Tax Credit): Provides private school scholarship support for students in grades K-12 based on their family income.
OSTC (Opportunity Scholarship Tax Credit): Provides private school scholarship support for students in grades K-12 who reside in low-achieving public school districts, as determined by combined math and reading assessment scores.
Eligibility
Individuals: Individuals must be an employee, owner, or shareholder of a company authorized to operate in PA or be a retiree with a PA personal tax obligation. When applying jointly, only one spouse must qualify.
Businesses: Any business authorized to operate in PA that is subject to at least one of the following: Personal Income Tax, Capital Stock/Foreign Franchise Tax, Corporate Net Income Tax, Bank Shares Tax, Title Insurance and Trust Company Shares Tax, Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine).
Step 1: Join the Yes Fund
Complete the one-page application/joinder agreement for the YES Fund. The YES Fund is managed by the Central Pennsylvania Scholarship Fund (CPSF).
Step 2: donate to Nazareth prep
Once CPSF confirms your participation, send them a check for your contribution. 100% of this money will be passed along to Nazareth Prep.
Step 3: State Tax Credit
The YES Fund applies for tax credits through DCED and then issues a PA Form RK-1 reflecting your tax credits that you will submit with your Pennsylvania state taxes.
Step 4: Claim Your State Tax Refund
File your PA-40 Individual Income Tax Return and claim the educational tax credit. Refunds related to the credit will be issued by the PA Department of Revenue.
Step 5: Federal Tax Deduction
If you itemize deductions for federal income tax purposes, you can also deduct the difference between the amount of your contribution and the PA credit as a charitable deduction on your federal taxes.
This information is not intended to serve as legal or tax advice. Please consult your financial or tax advisor.
100%
of your contribution is directed to Nazareth Prep.
90%
of your contribution comes back to you as a PA tax credit.
Conclusion
Educational tax credits enable you to redirect your tax dollars from Harrisburg to Nazareth Prep.
