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 2023-2024 school-year is July 3, 2023. Pennsylvania businesses can apply through DCED’s electronic single application system. 

The application guide can be found HERE.

Tax credit applications will be processed on a first-come, first-served basis by day submitted. 

Thank you Elderton State Bank

The Armstrong School District would like to thank Elderton State Bank for the $10,000 EITC donation.

Thank you for your generous contribution!

Pictured: Sam Kirk, Jr., Amanda Knell (Elderton State Bank), Jon McCullough, Dr. Charles Kreinbucher

Questions?

ASDF Contact: Sam Kirk, Jr.
Phone: (724) 548-6022

  • 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

  • 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 titled: Appendix I EIO - Business Application for Educational Improvement Organization Contribution

  • Once you learn that you have been awarded tax credits through the EITC program, you may direct your donations payable to The Armstrong School District Foundation at the following address:

    Armstrong School District Foundation
    Attn: Sam Kirk, Jr. ASDF Executive Director
    181 Heritage Park Dr., Suite 2
    Kittanning, PA 16201