Click on the link to take you to an article about the EITC program.
Through Pennsylvania’s Educational Improvement Tax Credit (EITC) program, a qualified business can fund education rather than pay a percentage of its state taxes. To do this, the business makes a gift, through the EITC program, to an EITC-registered scholarship organization or an EITC-registered education improvement organization. The state Department of Community and Economic Development (DCED) gives the business a tax credit equal to a percentage of the business’s contribution.
What is the EITC Program?
The Commonwealth of Pennsylvania enacted the Educational Improvement Tax Credit Program (EITC) in 2001 in order to allow businesses to support education in Pennsylvania. Through the EITC Program certain businesses can make donations to a school’s EITC registered scholarship fund and in return receive a credit against its Pennsylvania taxes that would otherwise be due.
Is your business eligible to participate in the EITC program?
A business is eligible to participate in the EITC Program if the business pays one of the following Pennsylvania taxes:
What amount of PA tax credits can your business obtain by making donations to an EITC Scholarship Fund?
The Educational Improvement Tax Credit (EITC), provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization. The tax credit increases to 90% if the company commits to making the same donations for two consecutive years.There is no minimum donation amount required. A business can donate $500, $5,000, or $50,000 to an EITC registered scholarship program depending on how much Pennsylvania tax it pays. A business paying taxes in Pennsylvania can receive up to $300,000 in tax credits annually. More importantly, the EITC provides children and families with a choice in their education.
How the EITC Program Works
A business applies to participate by completing a one page application form. The form is available by calling the Department of Community and Economic Development (DCED) at 717-787-7120 or online at the DCED’s website at www.newpa.com.
The DCED begins accepting applications for the fiscal year on July 1.
Applications are processed on a first-come, first-served basis on the day submitted so if you are a first time applicant it is essential that your application is received by the DCED early on July 1.
If approved, what do I need to do?
Your business must make its donation within 60 days of the notification letter
Within 90 days of the notification letter from DCED your business must also provide proof to DCED that the contribution was made.
Wait for written approval from the state DCED.
When notified of approval by the state, your company then writes a check in the amount of the tax credit. The check is made out to Scholastic Opportunity Scholarship (SOS).
Lastly, in a cover letter accompanying the check, you will designate that you specifically want Saints Peter and Paul Catholic School as the recipient of the tax credit. The check and letter is then sent to the Diocese of Pittsburgh.
SSPP is approved as a Scholarship Organization and able to receive EITC contributions from Pennsylvania businesses. Applications for the Educational Improvement Tax Credit Program should be submitted as early as possible the morning of July 1st. Unfortunately, EITC funding has been reduced in recent years and all credits are likely to be exhausted on this first day that applications are being accepted. We cannot stress enough the importance of faxing this EITC application to (717) 772-3581 first thing on July 1st.
Please feel free to contact us if you would like to participate or have any questions about this valuable program
To learn more about this great opportunity to help students through the gift of scholarships, please visit the site @ www.newpa.com.