Pennsylvania’s Educational Improvement Tax Credit program enables businesses to reduce their state tax liability by earning credits in exchange for a gift to approved educational improvement organizations such as The Charter High School for Architecture + Design (listed as the Designing Futures Foundation).
EITC provides companies with a 75% tax credit for donations to approved educational improvement organizations. The tax credit increases to 90% if a company commits to making the same donation for two consecutive years. A business paying qualifying taxes in PA can receive up to $750,000 in tax credits annually.
May 15, 2015 Availability
The state government allocates tax credits for education programs each year on a first-come, first-served basis until the credits run out. Businesses that have completed or partially completed their two year commitments can apply beginning May 15, 2015. All other businesses can apply beginning July 1, 2015.
The Benefits of Participating in EITC
There are several benefits to participating in EITC:
- Reduce your corporate state tax burden.
- Take a charitable giving deduction on Federal taxes.
- Help CHAD prepare inner city students for college, design careers and for life.
Who is Eligible to Participate?
The EITC program is available to businesses that file as S-Corporations, Partnerships, LLs or C-Corporations. Eligible taxes to which credits can be applied include:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Personal Income Tax of S Corporation shareholders
- Personal Income Tax of partners in general or limited partnerships
How to Participate in EITC
Participation is easy:
- Your company or your finance director completes a single-page online application (a first-time registration and login is required). The application can be found at http://www.newpa.com/find-and-apply-for-funding/apply-for-programs-funding
- After submitting the online application, submit the signature page to the PA Department of Community & Economic Development (DCED) via US mail.
- Upon receipt of your approval letter from the DCED, you have 60 calendar days from the date of the letter to make a contribution to CHAD. Please send your check to the Designing Futures Foundation at CHAD, 105 S. 7th Street, Philadelphia, PA 19103.
- Upon receipt of your contribution, we will send you an acknowledgement letter. Simply mail a copy of this acknowledgement to the DCED as proof of your contribution within 90 days of the date of your approval letter.
- After receiving proof of the contribution, the DCED notifies the Department of Revenue, which applies the tax credits against the taxes identified in the application.
If you have questions about participating in the EITC program, please contact Jim Wellen at 215-351-2900 x2224 or email@example.com.