Friday
Nov162012

Pennsylvania Educational Improvement Tax Credit (EITC)

Participate in the EITC Program

We are excited to report that the McCall Home and School Association was recently recognized as a “Qualified Educational Improvement Organization” by the Commonwealth of Pennsylvania. This presents an exciting opportunity to encourage and empower companies to donate funds to McCall Elementary School through a tax-credit program that gives them substantial savings on their returns.

Here is what you need to know:

What is the Educational Improvement Tax Credit?

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. A business paying taxes in Pennsylvania can receive up to $300,000 in tax credits per taxable year. More importantly, the EITC provides children and families with a choice in their public education and Pennsylvania businesses an opportunity to reinvest in our community and future.

  • 75% tax credit
  • 90% tax credit if donates for 2 consecutive years
  • receive up to $300,000 in tax credits per taxable year

Who is eligible?

Any business authorized to do business in Pennsylvania that is 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
  • Personal Income Tax of S-Corp shareholders or Partnership partners

How do you donate through the EITC?

Donating to McCall through the EITC program is easy. All it takes is a simple, one page application specifying the donation you would like to make. Your credits get approved before you make a donation, and 100% of your donation will go directly to McCall’s financial aid. McCall does not take any administrative fees or overhead costs out of your donation.

Remember that Pennsylvania limits the amount of credits that are available through the EITC program each year. In order to ensure that you will be approved for the program, it is important that you send your completed application to the state from July 1, 2012- June 30, 2013.

Because the state limits the amount of credits that are available statewide, it is important that you get your completed applications to the Pennsylvania Department of Community and Economic Development (DCED) between the dates listed above. The address of the DCED is listed on the EITC application.

For your convenience, you may also forward your completed application to McCall Home & School at any time, and we will deliver it to the DCED by the appropriate deadline. In order to utilize this option, please scan your application and email it to president@meetingmccall.com or mail it to:

McCall School
Attention: Dan Layden
325 S. 7th Street
Philadelphia, PA 19106

Once approved, donating companies have 60 days to make their financial contribution, and then 90 days to notify the DCED of their donation to take advantage of the tax-credit. 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.

Thank you for your support of McCall and the children we serve. If you have any questions about making an EITC donation to McCall, please call Dan Layden at 215-922-6486 or email him at dlayden@hangley.com.

PrintView Printer Friendly Version

EmailEmail Article to Friend

« Weekly Update - November 17, 2012 | Main | Weekly Update - November 10, 2012 »