Once approved by the Department of Community and Economic Development, your business must contribute to a qualified scholarship organization such as the Jewish Federation within 60 days. You need to send proof of the contribution to DCED within 90 days of the approval. The Federation will send an acknowledgement letter as proof of your contribution, and you are required to send a copy of this letter to DCED.
Pennsylvania has expanded the definition of a business to include a Special Purpose Entity (SPE). The sole and only purpose for an SPE to exist is for individuals’ Pennsylvania personal tax liabilities to flow through it so these individuals can participate in the EITC program. An SPE makes it easy for those individuals interested in supporting the Jewish Day School and the Jewish Community Center through the Jewish Federation. An SPE created by the Federation will serve as the business which enables qualified individuals to receive state tax credits for their PA taxes as well as federal charitable tax deductions. Shareholders, partners, members or employees of business firms ... most anyone can participate. In 2019, 26 individual donors contributed $169,200 toward education through the Federation SPE. In return for their generosity they each received a 90% tax credit against their PA income taxes. Please contact the Federation for more details.