For almost two decades the families of the Bradford Area Christian Acadamey (BACA) have greatly benefited from the Pennsylvania Educational Improvement Tax Credit (EITC) Scholarship program. This program greatly reduces the cost of tuition for families at minimal or no cost for the contributor.
In essence individuals are having the state of Pennsylvania send thier state tax dollars, tax
dollars which already have to be paid to BACA to be used for tuition assistance. This is an
incredible opportunity.
“We would like to remind you, or maybe this is the first time you will be reading this, that both individuals and businesses can redirect their PA tax dollars, tax dollars they already must send to Harrisburg, and have them help BACA families with their tuition expenses,” said BACA Board President Jim Machuga. “YES, you read that correctly! You can redirect your personal or business PA tax dollars — tax dollars you already must send to Harrisburg, and have them help BACA families with their tuition expenses. It sounds too good to be true, but it is true. Businesses have been doing this for 20 years, and individuals have been able to do this for about five years. There are a few exceptions, but many people and businesses can participate. Pennsylvania is one of a handful of states that give their citizens this incredible opportunity, and we should take full advantage of it. It’s a Win-Win on so many levels for so many people.”
This year BACA is especially looking for support with this program as their enrollment
numbers for next year are up 50% over this year, and still increasing.
Some key summary points of the program for individuals and businesses: This is a tax credit program, and not a tax deduction. This means that this may not cost individuals anything to participate. If an individual contributes at the preschool level, they will receive a 100% tax credit. If they contribute at the K-12 level they will receive a 90% tax credit. Individuals may also qualify for Federal Income Tax Credits or deductions. A two year commitment may be required.
Secondly, most individuals or couples filing jointly with Pa. income of $32,000 or more qualify. A minimum participation amount of $1,000 per year with a two year commitment is required. Many businesses qualify as well, but it depends on the type of taxes they pay. Businesses may wish to check with their tax advisor.
Thirdly, for individuals the timeline and forms for this program are as follows. The business timeline and forms are similar. Spring / Summer, complete and send in the one page application form. Summer / Fall, the Scholarship Group will send an agreement form. Recipients will initial in a few places, sign and return. In Fall, the Scholarship Group will request the contribution amount. Then in January / February, the Scholarship Group will send individuals a PA Schedule RK-1 form confirming their tax credit. This information goes on the PA Schedule OC and PA 40 tax forms.
Individuals who wish to learn more about this program can visit the BACA website at bacaacademy.org/donors.
