PA Educational Improvement Tax Credit (EITC) Business helping the Pennsylvania educational system to become the best it ca...
See your tax dollars work <ul><li>EITC has been recognized as a model for business-supported choice in education </li></ul...
PURPOSE <ul><li>Act 48 of 2003 amends the public school code to provide for the establishment of the EITC to be administer...
Eligibility <ul><li>If your company pays corporate net income tax, capital stock franchise tax, bank and trust company sha...
Most PA businesses are eligible <ul><li>Eligible businesses must apply and be approved by the DCED.  The form is available...
Act now to take part  <ul><li>Applications can be submitted to DCED beginning on Wednesday, July 1.   </li></ul><ul><li>Ap...
STATE TAX CREDIT <ul><li>If you made a 2-year commitment, you are entitled to a state tax credit equal to 90 percent of yo...
Tax calculation example <ul><li>Donate $10,000 with 2-year commitment:  </li></ul><ul><ul><li>Year one credit: $9000 </li>...
Tax calculation example <ul><li>Donate $10,000 with 1-year commitment:  </li></ul><ul><ul><li>Year one credit: $7,500 </li...
Type of organization you can make a donation to: <ul><li>All schools within the Diocese of Pittsburgh are eligible.  </li>...
Application process <ul><li>Determine the PA tax liability for a one, two or three year period. </li></ul><ul><li>Apply fo...
Process for obtaining the EITC <ul><li>DCED will notify the PA Department of Revenue and you that the process is complete ...
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Businesses can see their tax dollars at work for education when they participate in the EITC program

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Eitc Slideshow

  1. 1. PA Educational Improvement Tax Credit (EITC) Business helping the Pennsylvania educational system to become the best it can be.
  2. 2. See your tax dollars work <ul><li>EITC has been recognized as a model for business-supported choice in education </li></ul><ul><li>You’ll know your tax dollars are going to work because you can designate the school or scholarship entity that receives YOUR tax dollars. </li></ul>
  3. 3. PURPOSE <ul><li>Act 48 of 2003 amends the public school code to provide for the establishment of the EITC to be administered by the Dept. of Community & Economic Development. </li></ul><ul><li>Authorizes the award of tax credits to businesses that contribute to scholarship organizations or educational improvement organizations contained on a list published by the department. </li></ul>
  4. 4. Eligibility <ul><li>If your company pays corporate net income tax, capital stock franchise tax, bank and trust company shares tax, title insurance companies shares tax, insurance premiums tax, or mutual thrift institutions tax, or personal income tax of S corporation shareholders or partners in a general or limited partnership, you are likely eligible to participate. </li></ul>
  5. 5. Most PA businesses are eligible <ul><li>Eligible businesses must apply and be approved by the DCED. The form is available online at newpa.com/eitc </li></ul><ul><li>The total tax credit per business is limited to $300,000. </li></ul>
  6. 6. Act now to take part <ul><li>Applications can be submitted to DCED beginning on Wednesday, July 1.  </li></ul><ul><li>Applications are accepted on a first-come, first-served basis by day. </li></ul><ul><li>Applications are accepted by fax, by mail or by hand.  </li></ul><ul><li>Funds have run out in past years. </li></ul>
  7. 7. STATE TAX CREDIT <ul><li>If you made a 2-year commitment, you are entitled to a state tax credit equal to 90 percent of your donation. </li></ul><ul><li>If you make a 1-year commitment, you are entitled to a state tax credit of 75 percent of your donation. </li></ul><ul><li>Apply now. </li></ul>
  8. 8. Tax calculation example <ul><li>Donate $10,000 with 2-year commitment: </li></ul><ul><ul><li>Year one credit: $9000 </li></ul></ul><ul><ul><li>Year two credit $9,000 </li></ul></ul><ul><ul><li>Normal $10,000 contribution would be at a tax rate of 35 percent. After two years, considering tax savings, the cost to you would be $650. </li></ul></ul>
  9. 9. Tax calculation example <ul><li>Donate $10,000 with 1-year commitment: </li></ul><ul><ul><li>Year one credit: $7,500 </li></ul></ul><ul><ul><li>Normal $10,000 contribution would be at a tax rate of 35 percent. The net cost percentage would be 16.25% so actual cost to you would be $1,625. </li></ul></ul>
  10. 10. Type of organization you can make a donation to: <ul><li>All schools within the Diocese of Pittsburgh are eligible. </li></ul><ul><li>A list of organizations is available through the newpa.com website. </li></ul>
  11. 11. Application process <ul><li>Determine the PA tax liability for a one, two or three year period. </li></ul><ul><li>Apply for credit with the PA DCED. Do not make the contribution until you received approval from DCED. </li></ul><ul><li>DCED will send you a letter notifying you of your approval. </li></ul><ul><li>Once approved, you have 60 days to make your contribution and 90 days to send proof of such to DCED. </li></ul><ul><li>The charity will provide you with an acknowledgement, then you mail this acknowledgement to DCED. A copy of the cancelled check is also sufficient verification that can be mailed to DCED. </li></ul>
  12. 12. Process for obtaining the EITC <ul><li>DCED will notify the PA Department of Revenue and you that the process is complete and the credit is available for your use by the business or pass through entity. </li></ul><ul><li>For more information about supporting Seton-La Salle High School with this tax-credit program, contact Marilyn Walsh at 412-561-3583 x 119. </li></ul>

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