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 program.

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, 2012. 

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)
  • S-Corporations
  • Partnerships
  • Sole Proprietors
  • 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:

  1. 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).
  2. Business receives a letter of approval from DCED.
  3. Business submits monetary contribution within 60 days to Diocese of Pittsburgh with a letter stating that this money is to go towards Saint Wendelin School.
  4. Diocese of Pittsburgh provides business with acknowledgment of contribution.
  5. Business submits acknowledgment to DCED.
  6. DCED communicates with PA Dept. of Revenue and applicable tax credit is applied to business tax account.
  7. Credit is taken as a payment of taxes on businesses’ annual tax return filing.

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 also CLICK HERE to be taken to the NewPA Website.