Who may be eligible?
Pennsylvania residents who draw a salary from a for-profit Pennsylvania business, (or draw a salary from an out of state for-profit business authorized to do business is PA, and are subject to PA tax).
Retirees, sole proprietors, and non-profit employees who are PA residents, ONLY if they own (at least one share of) stock in a PA company, and owe PA personal income taxes.
Pennsylvania residents who are partners/members in a general partnership, limited partnership, Limited Liability Partnership, or Multi Member Limited Liability Company.
Who is NOT eligible?
People whose legal residence is outside of Pennsylvania.
Also, sole proprietors, single member LLCs (who file a Schedule C), and retirees, with the exception of those who own at least one share of stock in a PA company, who owe PA personal income taxes.
To whom is the payment made?
The payment is made to Mercyhurst Prep Scholarship #2, LLC.
The entity was established by a member of the MPS Board of Trustees for the sole purpose of collecting scholarship donations for Mercyhurst Preparatory School through PA EITC (Educational Improvement Tax Credit) program. The program provides scholarships to MPS students who qualify for the assistance financially according to PA state guidelines.
Each “member” is provided a PA schedule K-1 indicating the 90% PA tax credit, as well as a Federal K-1 which could provide a federal benefit.
When can the credit be used?
The credit can be used in the year of contribution.
How much can I donate?
A minimum of $1,000 per year with a required commitment of two years. The maximum is the amount you (and a spouse) owe on your joint PA state income tax return. (Our current donors give between $1,000 and $30,000 a year.)
What happens if I qualify now, but my situation changes before the next year’s commitment is due?
You are making a two-year commitment so it is your responsibility to retain your eligibility to get your 90% tax credit.
Can the credits be carried back or forward, or be refunded?
The credits cannot be carried back or forward, and are not refundable.