Gov. Corbett has signed the new FY budget which included significant changes to the EITC program!
Pennsylvania’s Educational Improvement Tax Credit (EITC)
The PA Legislature established EITC in May, 2001. PA’s EITC was first in the nation. Now, 11 years later, 16 states have an EITC program. The EITC program has proven successful.
PA’s EITC provides PA corporations with Tax Credits in return for corporate contributions to Non-Profit Scholarship Organizations.
Tax Credit is better than a tax deduction. Credit does not reduce taxable income. It is dollar for dollar reduction of actual taxes owed.
PA EITC may be taken against:
• Corporate Net Income Tax
• Capital Stock and Franchise Tax
• Bank and Trust Company Shares Tax
• Title Insurance Companies Shares Tax
• Insurance Premiums Tax
• Mutual Thrift Institutions Tax
• Personal Income Tax (subchapter s-corps)
Here’s how program works… it’s simple:
1. Submit a 1-page completed EITC Application to Department of Community and Economic Development (DCED). (Click here for the application)
2. DCED reviews and sends approval letter for your donation.
3. Your business then makes its donation to Second Century Fund, designating Bishop McCort Catholic High School as the recipient.
4. Submit proof of donation to DCED.
5. Complete PA tax return. Deduct tax credit from amount of taxes owed.
Click below for:
EITC Information BMCHS
Deadline/Submission Details for 2012:
Year 2 of 2 year committment: May 15
ALL CORPORATIONS (C/S/LLC) CAN FILE ON MONDAY, July 2,2012