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Valley Christian School
2364 Huntingdon Pike
Huntingdon Valley, PA 19006
Telephone 215.947.4581
Fax 215.947.4583

News Release
Contact: Cindy Bergvall
Phone: 215-343-2727

FOR IMMEDIATE RELEASE
9 A.M. EDT, February 1, 2006

CORPORATE CONTRIBUTIONS TO VALLEY CHRISTIAN SCHOOL COULD RESULT IN A SIGNIFICANT TAX CREDIT FOR BUSINESS

HUNTINGDON VALLEY, PA FEBRUARY 1, 2006: In 2001, a new law in Pennsylvania was passed which allowed corporations to donate money to scholarship funds and receive a tax credit. The funds can be used for scholarships to families within certain income limits attending public, private or parochial schools.

The Educational Improvement Tax Credit (EITC) can be for up to 75% of corporate taxes owed. However, if a business makes a two-year commitment at the same funding level the credit is 90% of taxes owed. The business can also still use the contribution as a charitable deduction on their Federal corporate tax return. The result is that the net cost of the contribution may end up being only 3 to 4% of the actual contribution.

For example, every year ABC Corporation donates $1,000 to their local private school. They commit to donating $20,000 for two years under the EITC program to a scholarship organization. The net cost after the tax credit and contribution deduction is $740. It is actually cheaper for the Corporation to donate money under this program than to give the money directly to the school. The cost to the Corporation is $740 each year and the school can receive $20,000 each year.

The money must be contributed to an approved scholarship organization and the business needs to complete a one-page application and submit it to the Department of Community and Economic Development (DCED), who is administering the program. DCED will notify the business if the credit has been approved.

Valley Christian School grants nearly $40,000 a year in financial aid to families. This program allows us to be reimbursed for this aid. We are looking for PA corporations who would like to maximize their donation to our school by receiving a tax credit on their corporate taxes. If you know of a company that would be interested please contact Cindy Bergvall at 215-343-2727 for more information.

More information is also available on the DCED website at www.newpa.com.

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