Tax Credits for Giving
EITC (Education Improvement Tax Credit) program
Enacted by the Pennsylvania Legislature in 2001, the Educational Improvement Tax Credit (EITC) program enables a Pennsylvania business to make contributions to approved Pre-Kindergarten Scholarship Organizations or Educational Improvement Organizations and receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $200,000 annually. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made. Tax Credits are used up quickly so your company's acceptance is not a guarantee. However, once you have applied and received your approval from Harrisburg, if you make your company's donation quickly and return the acknowledgement letter we will provide you, you should earn the tax credit. Of course, your contribution also is deductible to the fullest extent permitted by state and federal law.
How much money is available and who qualifies to get the scholarship and educational improvement credit money?
For the Pennsylvania fiscal years through 2014, the state budget has designated $75 million a year that is divided as follows: $44,666,667 million is appropriated annually for scholarship organizations; $22,333,333 million for innovative educational improvement programs (EIO) in public schools; and $8,000,000 for pre-kindergarten scholarship programs (Pre-KSO). (Source: GMS Surgent.com)
Businesses who are authorized to do business in Pennsylvania and who are subject to one or more of the following taxes: 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; or Personal Income Tax of S corporation shareholders or Partnership partners, are eligible.
Benefits to LCCC Early Learning Center
The LCCC Early Learning Center (ELC) is an authorized Pre-K Scholarship Organization (Pre-KSO). The EITC program offsets financial aid expenses, and makes the Early Learning Center more accessible to those eligible parents with need. We look forward to assisting companies that would like to take advantage of this opportunity to help students and faculty afford excellent early learning for their children whiule they attend or teach at LCCC.
If your donation dollars are balanced by a tax credit and donation deductions, isn’t it worth a generous gift to such a worthy cause?
Benefits to LCCC SHINE Program
The SHINE after-school program for K-4th grade students in the northern tier (Carbon and Schuylkill counties) has recently been approved as an Educational Improvement Organization for the EITC program. Your contributions help to provide food and special after-school learning opportunities for school-identified children with special academic or social needs. If your company would like to support a nationally-recognized and successful program while earning a substantial tax credit for your donation, this is it!
How To Participate
It is not too late to join the EITC program for the coming fiscal year 2015-2016!
First: Calculate your estimated corporate tax liability to the State of Pennsylvania for the next year.
Second: Allocate your estimated tax liability (or a portion thereof) to Pre-K scholarship assistance for the LCCC Early Learning Center or Educational Improvement Organization for the SHINE program. Remember that the first $10,000 is credited at 100%, and up to 90% of the amount thereafter up to the maximum.
Third: Apply for a tax credit by completing the one-page application on www.newpa.com (APPENDIX I - PKSO or EIO). Prior to submitting any application we do advise reviewing the completed application with your accountant.
The state must receive your application this year on Monday, July 1, 2015. Please remember that this deadline is crucial; early applications will be rejected by the state and late applications will most likely not qualify -- all available tax credits are often used up the first couple of days, so timing is important. The LCCC Foundation will deliver your application to Harrisburg on July 1, 2015 or you may fax it to (717) 772-3581 or email it to firstname.lastname@example.org . The program is popular, so you need to act early and fast on the deadlines to be sure your donation will generate a tax credit.
Or, mail you application (so it gets there for July 1) to:
Department of Community and Economic Development
The Education Improvement Tax Credit Program
Center for Business Financing – Tax Credit Division
400 North Street, 4th Floor,
Commonwealth Keystone Building
Harrisburg, PA 17120 – 0225
Telephone: (717) 787-7120 Fax (717) 772-3581
Web Site: www.newPA.com: SEARCH PA EITC Program
Please let the Foundation know if you have interest in this program. Call 610.799.1711 or email email@example.com
Fourth: As soon as you receive your letter of notification from the state that your business has been approved for tax credits, make your donation to the LCCC Early Learning Center or for the SHINE program (Make check payable to the "LCCC Foundation" and mark in the Memo section either ELC-EITC or SHINE-EITC). You have 60 days from the date of notification to send your check, but sending your donation sooner is a better way of assuring your tax credits will be applied. Remember, credits are limited and there is no guarantee of award. However, you haven't lost anything by trying. In fact, as we pointed out above, your donation is fully deductible on state taxes and at least partially on federal taxes (see your tax advisor for more information).
Fifth: Send the state a copy right away of the acknowledgement letter the Foundation will supply you after you make your donation. The state must receive this letter within 90 days of its original acceptance letter to you in order to ensure proper credit. Time is of the essence.
The LCCC Foundation greatly appreciates all gifts from companies and corporations on behalf of the College, and especially those that make it easier for our students and their families to access higher education while assuring the safety and learning opportunities for their children. Please consider these worthwhile programs for your business this year. For more information, contact the LCCC Foundation at Foundation@lccc.edu or call 610.799.1711.