PENNSYLVANIA EDUCATIONAL IMPROVEMENT TAX CREDIT (EITC)

June 2008

Would you like to donate to The Philadelphia School AND pay fewer tax dollars as a result?
You can. The Pennsylvania Educational Improvement Tax Credit (EITC) makes it possible.

If your business pays certain Pennsylvania State income taxes, the combination of tax credits and deductions available can make the cost of the gift ZERO. Nothing. The dollars your business would have paid to the State in taxes will instead be diverted to TPS in satisfaction of your Pennsylvania tax liability.

The EITC program allows our business stakeholders to substitute TPS for the Commonwealth of Pennsylvania for up to $200,000 of their tax liability with little or no additional cost whatsoever.

Frequently Asked Questions

• Who may make EITC gifts?
If a corporation pays any of the following corporate taxes to the Commonwealth of Pennsylvania, the EITC program allows it to pay 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 $200,000, or 90% of its contribution, if it contributes to TPS for two consecutive years. Total tax credits authorized for the scholarship program is 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, 2008. 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 usually 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 email her at advancement@tpschool.org.

Please consult your accountant about participation in the program.