EITC - Educational Improvement Tax Credit
Enacted in 2001, the Educational Improvement Tax Credit (EITC) provides
a tax credit to businesses that pay Pennsylvania's corporate income tax
for contributions to scholarship organizations that give private-school
scholarships to eligible children.
Businesses can donate to Saint Wendelin School and pay fewer tax dollars
as a result. The Pennsylvania Educational Improvement Tax Credit (EITC)
makes it possible.
The EITC Program enables companies to support nonprofit schools at
minimal cost. Instead of sending tax dollars to Harrisburg, companies
can reallocate them to support Saint Wendelin School’s financial aid
Saint Wendelin School is an approved Scholarship Organization and has
already received support through the EITC Program. The Commonwealth of
Pennsylvania has allocated millions of dollars in tax credits to the
EITC program for 2012-2013. Funds are disbursed on a
first-come-first-served basis. The deadline for applications is June 30,
How does it work?
Businesses participating in the EITC program can achieve a tax savings
credit against Pennsylvania state taxes.
How is that possible?
The dollars the business would have paid to the state in taxes will
instead be diverted to Saint Wendelin School in satisfaction of up to
$300,000 of the company’s Pennsylvania tax liability.
Who may make EITC gifts?
You might be surprised. Businesses ranging from neighborhood
pharmacies, to mid-sized companies, to large corporations all are
eligible. This includes the following types of businesses.
C-Corporations (taxed at the corporate level)
Limited Liability Companies (LLC’s)
Subchapter S corporations and other business entities that pay their
State business taxes under the personal income tax on PA business income
can now fully participate.
Here are the business taxes you can claim credits against:
Corporate net income tax
Capital stock/franchise tax
Bank and trust company shares tax
Title insurance companies shares tax
Insurance premiums tax
Mutual thrift institutions tax
How much of a business’ tax liability can be donated to Saint Wendelin
School through EITC? Businesses can receive a tax credit equal
to 75% of a contribution up to $300,000 per taxable year. The tax credit
increases to 90% if the business agrees to provide the same amount for
two consecutive years.
The process is very simple:
Business completes one page application and submits it back to Saint
Wendelin School (we will fax or deliver all of our EITC contributors at
the same time on July 1, 2012).
Business receives a letter of approval from DCED.
Business submits monetary contribution within 60 days to Diocese of
Pittsburgh with a letter stating that this money is to go towards Saint
Diocese of Pittsburgh provides business with acknowledgment of
Business submits acknowledgment to DCED.
DCED communicates with PA Dept. of Revenue and applicable tax credit is
applied to business tax account.
Credit is taken as a payment of taxes on businesses’ annual tax return
When do I submit the application?
For next year, the application should be submitted on July 1, 2012,
because the money is disbursed on a first-come-first-served basis.
Saint Wendelin School will fax or deliver all EITC contributor forms at
the same time on July 1, 2012.
Can Saint Wendelin School help me apply? YES! We will
work with you – even complete the application for your signature, and
deliver it for you. We want to make the process as simple as possible.
There is state tax credit money available right now. Please call Saint
Wendelin School, 724-285-4986 and we can guide you through the process
or call Dr. Ron Bowes at the diocese, 412-456-3090 and just mention tax
credits. He will provide you with all the information you need. You can
CLICK HERE to be taken to the NewPA Website.