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Redirect your PA State Tax Liability for a 90% Tax Credit

Fund Pennsylvania school children to experience the magic of the Colebrookdale Railroad's "Rails of Revolution: the American, Industrial, and Environmental Revolutions" education program free-of-charge. Fund life-changing vocational and career training experiences for at-risk youth, free-of-charge... all while receiving a 90% tax credit.

Group of children and adults posing in front of a vintage train car on a sunny day.

How it Works

Through Pennsylvania’s Educational Improvement Tax Credit (EITC) program, donors receive up to a 90% tax credit against their personal PA state tax liability by making their gift through Colebrookdale Railroad’s Friends of Education, LLC.

To participate in the EITC program and receive 90% tax credits after a contribution, an individual or company becomes a temporary member of Colebrookdale Railroad’s Friends of Education, LLC, with a 2-year commitment to fund the LLC. These credits will be distributed to each member via a Pennsylvania tax form (K-1), and are then applied to your PA tax liability for the tax year in which the donation is made.

Tax Program FAQ’s 

Eligible participants to the tax credit program, referred to below as “donors” include:

1. Individuals who pay Pennsylvania income taxes

2. Businesses that are authorized to do business in Pennsylvania, and are subject to one or more of the taxes listed below

To learn more about the tax credit program, please click here.

Becoming a Donor is Simple

  1. Make a 2-year commitment to a scholarship donation through Colebrookdale Railroad’s Friends of Education, LLC by redirecting your Pennsylvania state tax liability.

  2. You then sign your LLC agreement and write your check to Colebrookdale Railroad’s Friends of Education, LLC. We then disperse the funds to the school of your choice or that of greatest need if your gift is undesignated.

  3. Colebrookdale Railroad’s Friends of Education, LLC, provides you with a K-1 tax form reporting your donation, and your 90% tax credit is issued to you by the state.

  4. Your tax credit can either be used to fund your year 2 commitment to Colebrookdale Railroad’s Friends of Education, LLC, making it a much smaller second year out-of-pocket contribution; or you can maintain your first year donation amount, nearly doubling your contribution to your designated school.

 

Almost all state taxes can be offset by this credit.

Individuals who pay Pennsylvania income taxes and businesses that are authorized to do business in Pennsylvania who are subject to one or more of the following taxes:

  • Personal Income Tax, Sub-chapter S-corporations and other “pass-through” entities will be able to use the credit against the shareholders’, members’, or partners’ PA personal income taxes

  • Corporate Net Income Tax

  • Malt Beverage Tax

  • Bank and Trust Company Shares Tax

  • Insurance Premiums Tax (excluding surplus lines, unauthorized, domestic/foreign marine)

  • Mutual Thrift Institutions Tax

  • Title Insurance Companies Shares Tax

  • Retaliatory Fees under Section 212 of the Insurance Company Law of 1921

Next Steps… 

Almost all state taxes can be offset. Fund life-changing vocational and career training programs.

To learn more, please contact [email protected]