Enacted in 2001, Pennsylvania’s Educational Improvement Tax Credit (EITC) program allows eligible businesses and individual taxpayers—to redirect a portion of their Pennsylvania tax liability to approved scholarship organizations and local schools instead of the state’s general fund. 

Today, participants can typically receive up to a 90% tax credit on their eligible contributions when they commit for two consecutive years, helping fund grants and scholarships for families at schools like Holy Family. Regional Catholic School.

How the Program Works
Commitment: To receive the maximum 90% tax credit through the Foundation for Catholic Education (HOME - Foundation for Catholic Education) , you generally commit to participating in the program for at least two consecutive years.

Donation: Each year, you contribute to the Foundation for Catholic Education, the Foundation for Catholic Education will then allocate the contribution to a scholarship LLC or similar entity and designate Holy Family as your recipient school.

Holy Family gets your support: Foundation for Catholic Education allocates 100% of your designated contribution to Holy Family for tuition assistance and provides you with the appropriate tax forms (such as a K‑1 and related schedules) needed to claim your Pennsylvania tax credit.

You get a tax credit: When you file your state return and attach your Schedule K-1, Pennsylvania gives you a state tax credit worth 90% of your contribution.requirements and have sufficient Pennsylvania tax liability, the approved credit is applied to reduce your state tax bill.

If you have Pennsylvania state income tax liability, you may be able to participate through a Foundation for Catholic Education Scholarship LLC. 

The easiest way to check is to look at Line 12 on your most recent PA‑40. If Line 12 shows a meaningful tax liability (typically around $3,000 or more to meet program minimums), you are a good candidate.

Please confirm your eligibility and contribution level with Foundation for Catholic Education and your tax advisor.

Note for Delaware commuters: If you live in PA but work in Delaware, your Pennsylvania state income tax may already be reduced to zero by a credit for taxes paid to Delaware. In that case, you may not be able to benefit from this program. Check Line 12 on your PA‑40 or consult your tax professional to confirm.

Businesses operating in Pennsylvania: C‑corps, S‑corps, LLCs, and partnerships that pay Pennsylvania state taxes can participate directly in the EITC/OSTC programs or through a Foundation for Catholic Education Scholarship LLC. Business participants generally receive a 75% tax credit for a one‑year commitment or 90% for a two‑year commitment, subject to state approval and annual credit caps.

You decide to make a $1,000 contribution through Foundation for Catholic Education and direct the amount to Holy Family. 

When you file your Pennsylvania taxes, you receive a $900 tax credit (assuming you meet the program’s eligibility and two‑year commitment requirements). 

In practical terms, a $1,000 gift to our school through this program costs you only $100 out-of-pocket.

September to December: Reach out to Foundation for Catholic Education: You complete the required participation paperwork, such as the commitment form, and indicate the amount you wish to contribute based on your expected Pennsylvania tax liability. You also designate Holy Family Regional Catholic School to receive the scholarship support.

Make your payment: You submit your contribution to Foundation for Catholic Education. Foundation for Catholic Education then allocates those funds to Holy Family for tuition assistance, grants, or scholarships.

February to March: Receive your tax documents: After year-end processing, Foundation for Catholic Education provides the tax documentation you need, such as a Schedule K-1 or similar form, for use with your Pennsylvania return.

March/April: File your taxes: When you or your tax professional prepare your Pennsylvania tax return (PA-40), you report the credit using the applicable Pennsylvania credit schedule and include the supporting documentation as required. Credit is applied: If you meet the program requirements and have sufficient Pennsylvania tax liability, the approved credit is applied to reduce your state tax bill.

• EITC Program

• Contact for More Information: [email protected]

• PA EITC Information: PA.gov

• Foundation for Catholic Education: Foundation.org

• Forms: https://foundationfce.org/eitc-commitment-form/