In the spring of 2001, the Commonwealth of Pennsylvania established the Educational Improvement Tax Credit (EITC) Program to encourage private business to make contributions directly to eligible schools like Waldron Mercy Academy, in exchange for substantial tax credits. Eligible business receive a tax credit equal to 75 percent of its contribution to a scholarship organization and up to 90 percent if the business commits to donating the same amount for two consecutive years.
Significant changes have been made to the program in the past few years. In addition to regular C corporations being able to participate, the EITC Program has been expanded to include tax credits for Personal Income Tax of S Corporation Shareholders, or partners in a general or limited partnership. These changes result in a much broader base of business owners who are now eligible to take advantage of this program.
Even though your company may not have been able to participate in the past, your business may now qualify, and Waldron Mercy would greatly appreciate your support through such a great program. To find out more about EITC or to start the application process, please contact Susan Kelly O’Neill ’92, director of annual giving and alumni relations, at 610-664-9847, ext. 148, or soneill@waldronmercy.org.
Eligibility:
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes: Corporate Net Income Tax, Capital Stock Franchise Tax, Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; Mutual Thrift Institution Tax; or Personal Income Tax of S corporation shareholders or Partnership partners.
Uses:
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Where to Apply:
DCED Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, Pa., 17120, call 717-787-7120 or e-mail tknorr@state.pa.us. Applications are approved on a first-come-first-served basis by date received.
Terms:
An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter; Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable.
From www.newpa.com