"Good for Pennsylvania's Children - Good for Pennsylvania's Business Community"
What are Educational Improvement Tax Credits?
A tax credit for businesses that donate to qualified Educational Improvement Organization(s) (local education foundations) to help implement programs not supported by the school district budget.
What businesses qualify for the tax credit?
Businesses authorized to do business in Pennsylvania and who are subject to one or more of the following taxes:
How much of a tax credit can I get for my business?
The tax credit is a 75% credit (against taxes owed). However, if a company provides a written two-year commitment of equal funding, the credit becomes 90% (existing charitable deductions still apply with this credit, increasing the value of the tax credit). Eligible companies may take up to $200,000 in tax credits per year.
What organizations can businesses contribute to in order to receive the credit?
Organizations eligible to receive EITC contributions must be a recognized 501 (C)(3) and use 80% of their annual receipts on approved programs. Additionally, they must register with the Department of Community and Economic Development (DCED) to be listed and placed on a list of eligible organizations. (The Children's Cultural Center is an eligible organization.)
How do business know which organizations are listed?
Check the DCED Web site (www.newpa.com). Search "EITC" and view the Educational Improvement Organization List.
Can businesses contribute to more than one organization?
Yes. Businesses can donate to as many eligible organizations as they choose.
How will my donations be used?
The Children's Cultural Center offers supplementary programs that school districts cannot offer directly due to budgetary constraints. DCED has approved our list of projects for funding we receive through the EITC program.
What is the process for businesses to receive the tax credit?
Businesses apply to DCED for the tax credit. If the organization is listed with the department and there is money available in the program (there is $50 million dollar annual sap on the program), tax credits will be awarded on a first-come, first served basis. After approval, business must make their contributions within 60 days.
The Children's Cultural Center will streamline the application process for you; just fill out the one page DCED form and send it to our office by June 20, 2007. We will personally deliver your paperwork to Harrisburg. When you receive written approval, mail your EITC donation to the Children's Cultural Center within 60 days. We will send you an acknowledgement letter that you can mail to DCED.
I have other questions.
Please call our office at (215) 230-0160 and we will be happy to answer all your questions.