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Join a Special Purpose Entity (SPE)

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Participating in Pennsylvania’s tax credit program is simple. By contributing through a Special Purpose Entity (SPE), you can redirect your state tax dollars to support scholarships and educational opportunities—while receiving a 90% tax credit in return.

Estimate My PA Tax Liability

Estimate My PA Tax Liability

PA State Tax Liability: i Liability calculated by multiplying the net PA Taxable income shown on your PA-40 return by 0.0307 (3.07%).  $0.00

Contribution Amount: i Based on the information you've provided, the contribution amount listed should cover your full tax liability. Contribution amount × 0.90 (90%).  $0.00

Annual Contribution:  $0.00

*2-year Commitment Required

By using this calculator to estimate your liability, you understand this is for estimation purposes only in determining participation in the Pennsylvania EITC program based on previous year’s taxable income. Children's Tuition Fund does not provide tax advice and recommends consulting with a tax advisor prior to committing funds or contributions.

There is a minimum of $1,000 in tax liability required to participate with Children's Tuition Fund up to the amount of your tax liability.

  • Contribution: $3,000
  • Tax Credit (90%): $2,700
  • Out-of-Pocket Cost: $300
  • Bonus: That $300 out-of-pocket cost may be eligible as a charitable deduction on your federal taxes (based on your specific tax situation).

Net Impact: You redirect your state taxes to scholarships, receive $2,700 back in state tax credits, and may lower your federal tax liability with a charitable deduction on the $300.

Disclaimer: Children’s Tuition Fund is not a tax advisor and does not provide tax advice. Participants should consult their own tax advisor regarding specific tax benefits and eligibility.

A Special Purpose Entity (SPE) is a type of LLC created so individual taxpayers in Pennsylvania can take part in the state’s Educational Tax Credit programs (EITC and OSTC).

By joining an SPE:

  • You commit to a contribution (through a simple joinder agreement).
  • Your contribution is directed to scholarships at the school you choose.
  • You receive up to a 90% Pennsylvania state tax credit and may also claim the remaining out-of-pocket cost as a federal charitable deduction.
  • The SPE provides you with a K-1 form before March 15th to use when filing your state taxes.

In short: An SPE lets individuals redirect their PA state taxes to scholarships for students—while receiving significant tax benefits.

A tax credit is a provision that reduces a taxpayer's final tax bill. A tax credit is not a deduction.

When you participate through a Special Purpose Entity (SPE):

  • You make your contribution upfront through the payment portal.
  • That contribution earns you up to a 90% Pennsylvania state tax credit.
  • At tax time, you apply the credit to your PA state tax return, reducing the amount you owe by that amount.
  • The SPE provides you with a K-1 form each February to use when filing your state taxes.

Example: A $3,000 contribution provides a $2,700 PA tax credit. Your net cost is just $300.

If you anticipate having similar liability to last year, you can review your previous years’ liability by viewing your PA-40 Adjusted PA Taxable Income. You can also use our Estimate My PA Tax Liability calculator. Please know, this is for estimation purposes only in determining participation in the Pennsylvania EITC program based on previous years’ taxable income.

Disclaimer: Children’s Tuition Fund is not a tax advisor and does not provide tax advice. Participants should consult their own tax advisor regarding specific tax benefits and eligibility.

Frequently Asked Questions