Educator improvement tax credit program
What is the Educational Improvement Tax Credit (EITC) Program and how can my company benefit?
Through the EITC program, you have the power to keep the majority of your company’s state tax dollars in your home area by helping to fund state approved, educational improvement programs run by the Armstrong School District Foundation (ASDF). Not only can a donating company accrue the public relations benefits that occur whenever it supports a worthy cause in the area where it does business, but by supporting an education organization in which employees have a special interest (such as their child’s school), an employer can gain the appreciation of the people who make the business work. It is a win/win/win situation! The employer wins, the employees win, and the kids that the Armstrong School District Foundation serves win! The ASDF is an EITC-registered educational improvement organization. This means, we are on the state’s list of acceptable organizations to which you may donate your tax credit dollars through the EITC program.
Through Pennsylvania’s Educational Improvement Tax Credit (EITC) program, a qualified business can donate to education through the Armstrong School District Foundation (ASDF),rather than pay a percentage of its state taxes. If a company commits to 1 year of donations to the ASDF, it can receive tax credits worth up to 75% of its donations for that year. However, if a company commits to 2 years of donations of equal amounts in each year, it can receive up to a 90% tax credit for those 2 years. On top of that, all donations made to the ASD Foundation through this program, are tax deductible for the full amount of the donation for the year in which they were given! This means that it could be possible for a company to recoup up to and even more than 100% of its donations in state tax deductions and credits. A company can donate any amount, with a maximum donation of $300,000 per year.
The EITC program is run by the Pennsylvania Department of Community and Economic Development (DCED). The DCED determines the eligibility of businesses, application procedures, application deadlines, and tax credit limits. The deadline to apply for tax credits for the 2014-2015 school-year is July 1, 2014. It is imperative to apply electronically, on July 1, 2014, as the process is competitive and tax credits are usually exhausted in the first three days of the acceptance of applications by the DCED. The DCED randomly chooses applications each day, beginning with the applications it receives on July 1,2014. Once all of that day’s applications have been exhausted, it moves to the applications received on July2, 2014, and then July 3, 2014 and so on until all of the tax credits have been awarded to qualifying companies. Again,we must stress the fact that the DCED usually runs out of tax credits in the first three days, so please remember to submit your 1 page electronic application on July 1, 2014.
Through Pennsylvania’s Educational Improvement Tax Credit (EITC) program, a qualified business can donate to education through the Armstrong School District Foundation (ASDF),rather than pay a percentage of its state taxes. If a company commits to 1 year of donations to the ASDF, it can receive tax credits worth up to 75% of its donations for that year. However, if a company commits to 2 years of donations of equal amounts in each year, it can receive up to a 90% tax credit for those 2 years. On top of that, all donations made to the ASD Foundation through this program, are tax deductible for the full amount of the donation for the year in which they were given! This means that it could be possible for a company to recoup up to and even more than 100% of its donations in state tax deductions and credits. A company can donate any amount, with a maximum donation of $300,000 per year.
The EITC program is run by the Pennsylvania Department of Community and Economic Development (DCED). The DCED determines the eligibility of businesses, application procedures, application deadlines, and tax credit limits. The deadline to apply for tax credits for the 2014-2015 school-year is July 1, 2014. It is imperative to apply electronically, on July 1, 2014, as the process is competitive and tax credits are usually exhausted in the first three days of the acceptance of applications by the DCED. The DCED randomly chooses applications each day, beginning with the applications it receives on July 1,2014. Once all of that day’s applications have been exhausted, it moves to the applications received on July2, 2014, and then July 3, 2014 and so on until all of the tax credits have been awarded to qualifying companies. Again,we must stress the fact that the DCED usually runs out of tax credits in the first three days, so please remember to submit your 1 page electronic application on July 1, 2014.
Is my company eligible to participate in the EITC program?
Any company who pays any one or more of the following six taxes is eligible to participate:
A. Corporate Net Income Tax
B. Capital Stock Franchise Tax
C. Bank and Trust Company Shares Tax
D. Title Insurance Companies Shares Tax
E. Mutual Thrift Institutions Tax
F. Insurance Premiums Tax
G. Personal Income Tax of S Corporation Shareholders or Partnership Partners
A. Corporate Net Income Tax
B. Capital Stock Franchise Tax
C. Bank and Trust Company Shares Tax
D. Title Insurance Companies Shares Tax
E. Mutual Thrift Institutions Tax
F. Insurance Premiums Tax
G. Personal Income Tax of S Corporation Shareholders or Partnership Partners
How does my company apply for tax credits though the EITC program?
First, make sure your company is eligible to participate in the EITC program (see above). Next, go to the following link to fill out your 1 page application:
http://newpa.com/sites/default/files/uploads/OSTC-EITC_Handbook2013.pdf
The directions that you would need to follow to be able to donate to the ASD Foundation, fall under the following heading on the application form:
III. Application and Approval
A. Business SO and EIO Application and Approval
If you scroll down, you will find that there are three different application forms at the bottom of the page.
The Armstrong School District Foundation falls under the second form at the bottom, which is entitled:
"Appendix I - EIO - Business Application forEducational Improvement Organization Contribution"
http://newpa.com/sites/default/files/uploads/OSTC-EITC_Handbook2013.pdf
The directions that you would need to follow to be able to donate to the ASD Foundation, fall under the following heading on the application form:
III. Application and Approval
A. Business SO and EIO Application and Approval
If you scroll down, you will find that there are three different application forms at the bottom of the page.
The Armstrong School District Foundation falls under the second form at the bottom, which is entitled:
"Appendix I - EIO - Business Application forEducational Improvement Organization Contribution"
How may I direct my donation to the ASD Foundation?
Once you learn that you have been awarded tax credits through the EITC program, you may direct your donations payableto The Armstrong School District Foundation at the following address:
Armstrong School District Foundation
PO Box 961
Kittanning, PA 16201
Attention: Chris Garritano, ASDF Executive Director
Questions?
ASDF Contact: Chris Garritano
Phone: (724) 543-4800
Armstrong School District Foundation
PO Box 961
Kittanning, PA 16201
Attention: Chris Garritano, ASDF Executive Director
Questions?
ASDF Contact: Chris Garritano
Phone: (724) 543-4800
How can I find out more about the EITC Program?
You may read more about the rules of the EITC program on the State’s Website at the following link:
http://www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/educational-improvement-tax-credit-program-eitc
http://www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/educational-improvement-tax-credit-program-eitc
