Businesses can apply for tax credits that redirect their state tax liability towards scholarships for Veritas Academy students. There are two programs:
Educational Improvement Tax Credits (EITC)
Qualifying businesses can direct a portion of their state taxes to Veritas Academy through the Educational Improvement Tax Credit program. Businesses can commit to making contributions for one or two years. If businesses commit to giving for two years, the tax credit is virtually 100%, so the only difference for your business is that you can give to Veritas Academy instead of giving to the Commonwealth of Pennsylvania.
Opportunity Scholarship Tax Credits (OSTC)
The Opportunity Scholarship Tax Credit (OSTC) functions similarly to the Educational Improvement Tax Credit program. However, under the OSTC program students may receive a scholarship if they reside within the attendance boundary of a school that performs among the bottom 15% of the state. A number of failing schools are found right here in Lancaster County.
Special Purpose Entity's (Education Tax Credits for Individuals)
In December of 2016, Veritas Academy was granted an exciting opportunity to expand our EITC/OSTC reach to offer this mutually beneficial tax credit to individual tax payers. Formerly, this unique program has been available exclusively to business owners. In October of 2014, however, an amendment to Article XVII-F of the Tax Reform code through Act 194 was made, and the EITC/OSTC definition of “business firm” and “pass-through entity” was expanded to allow for the use of credits on joint and personal income tax returns. This Special Purpose Entity (SPE) and unique vehicle for giving allows individuals not qualified to receive credits directly from Pennsylvania an opportunity to receive the same tax benefit. If you are an individual or couple with a state tax liability of $3,500 or more, and you make a donation to Veritas Academy through our approved Special Purpose Entity in the amount of your state tax liability, you can receive a 90% state tax credit for said donation. The entire donation can then be deducted federally. For minimal or no out of pocket expense, you can divert your state taxes from Harrisburg to Veritas Academy. Through this program, our school has already reaped rich rewards, and we are eager to see how the Lord directs and provides in the future. We would love to begin a grassroots type movement wherein all eligible families participate in the financial betterment of our school.
If you would like to learn more, please contact Sarah Yacoviello, Director of Development, at 717-817-6586.