Pennsylvania Educational Improvement Tax Credit (EITC)

The Philadelphia School is an approved scholarship organization under the Edcational Improvement Tax Credit Program (EITC). You may want to speak to your accountant to see if your business qualifies.

• What is EITC? Enacted in 2001, the Educational Improvement Tax Credit (EITC) provides a tax credit to businesses that pay Pennsylvania's corporate income tax for contributions to scholarship organizations that give private-school scholarships to eligible children.

The EITC program enables a Pennsylvania business to direct up to $300,000 of its Pennsylvania state tax dollars directly to The Philadelphia School’s scholarship program. Tax credits are given for 75 percent of a one-year gift and 90 percent of gifts given in two consecutive years.

• Who can make a gift? Eligible corporations. If a corporation pays any of the following corporate taxes to the Commonwealth of Pennsylvania, the EITC program allows it to make a gift to TPS instead:

• Corporate Net Income Tax
• Capital Stock Franchise Tax
• Bank and Trust Company Shares Tax
• Title Insurance Companies Shares Tax
• Insurance Premiums Tax
• Mutual Thrift Institution Tax

• How much of my tax liability may I donate to TPS through EITC? Pennsylvania’s tax credit is for 75% of a corporation’s contribution of up to $300,000 per taxable year, or 90% of its contribution, if it contributes to TPS for two consecutive years. Total tax credits authorized for the scholarship program are limited annually, and tax credits are awarded to participating businesses.

• Where do I get an application? The application form is available through the Department of Community and Economic Development at (717) 787-7120 or at www.newpa.com. Select EITC Business Guidelines for further information and the application form.

• When do I submit the application? Applications may be received on by the PA EITC Office beginning July 1, 2009. Because EITCs will be made available on a first-come, first-served, basis it is important that your application is delivered on July 1. (Early applications arriving at the PA EITC office will be returned to sender for re-application. Late applications are sometimes denied due to lack of funds.)

• Whom should I contact at TPS to learn more or to discuss my interest in making an EITC gift? Joan Giannobile, Director of Development, would be happy to speak with you. Joan can be reached at 215-545-5323, ext. 271 or via email.