Educational Tax Credits for Businesses
Redirect your business tax dollars to benefit the local community!
In this year’s PA Budget that was recently passed an incredible tax credit for Businesses was extended to Subchapter S corporations and other pass-thorough business entities (such as limited partnerships and others) that pay their State business taxes under the personal income tax on PA business income that was previously only available to Major Corporations. This Tax Credit will allow you to re-direct funds that you would normally pay to the State in PA Business Taxes to Qualified Scholarship Organizations like the Center’s Financial Aid Program. This program has limits on the amounts of credits issues. If you are a business that falls into this category, please contact Merle at 724-593-9200 Ext 103 ASAP to find out about this program or email us at info@champion.org and put EITC TAX CREDIT in the Subject Line to make sure it doesn't get caught in a spam filter.
Click Here for an application to apply. (Note this application is from DCEC, but contains only the appendex sections that apply to the Center's K-12 and Pre-K Scholarship Organizations.)
The Pennsylvania Legislature offers a tax credit (not just a deduction) to businesses like you called the Educational Improvement Tax Credit (EITC). Enacted in May 2001, the EITC provides Pennsylvania companies with a tax credit with a variety of levels of credit (some up to 100%) for contributions to non-profit scholarship or educational improvement organizations such as the Center's Scholarship Organization. It also will allow you to utilize this contribution as a charitable gift on your federal taxes. A "win-win" situation for businesses & schools, it is simply reallocating your tax dollars to the local community.
Corporations who qualify are those who pay one or all of the following taxes:
New! Subchapter S Corps, Limited Partnerships and other Pass through organizations (for example filing PA Forms 20S or 65)
Corporate net income tax
Capital stock franchise tax
Band & trust company shares tax
Title insurance company shares tax
Insurance premiums tax
Mutual thrift institutions
"For businesses, EITC is an attractive economic incentive; for low-income families wanting to send their children to private schools, it is a godsend." - Bruce Barron
Beginning July 1- Applications are processed on a first-come-first-served basis...Will you get more information today?
Call Merle Skinner at 724-455-2122 ext 103 e-mail us at info@champion.org
There are Two Tax Credit Programs Available that the Center participates in:
1. A K-12 Tuition Tax Credit for Students in Elementary, Middle School and High School
2. An Early Education Tax Credit for STudents in Preschool.
Tax Credits: More Attractive than a Standard Charitable Donation?
Yes! While deductions reduce your amount of taxable income, tax credits reduce your actual tax bill, dollar-for-dollar. A one year K-12 commitment allows a business 75% credit against taxes owed, however a company who makes the same commitment for two consecutive years to the K-12 Program will be eligible for a 90% credit. Tax credits are utilized AFTER your tax liability is established and eligible companies may take up to $300,000 in tax credits per year. This is even more (100%) for money given to the Early Education Tax Credit.
The P-K Program allows 100% Credit for the first 10,000 and then 90% after that. Only a one year commitment is required.
The Goal is to allow families to choose the right school for their child without letting economics become the deciding factor.
Indian Creek Valley Christian Family & Children’s Center Scholarship
Fund as a Non-Profit Scholarship Organization:
Want to hear from some of the businesses that have supported our program?
Champion Christian School, a program of the Christian Family & Children’s Center, is committed to Academic excellence within a nurturing and distinctly Christian atmosphere. The ICVCFCC Scholarship Fund exists to provide students (whose families meet state income guidelines) the opportunity to receive a quality education - a Christian education - at CCS either the North Campus in Donegal or the South Campus in Indian Head. It also funds dedicated contributions to Somerset Christian School. The ICVCFCC Scholarship Fund qualifies for the EITC tax income credit.
The first state to pass an education tax credit aimed at corporations, the PA tax credit has in its early years already changed thousands of families lives in Pennsylvania, in our area, and specifically in the Center. Already tens of thousands of children state wide have received scholarships and thousands of businesses have participated. Find out more today...
History of the Tax Credit
In a relatively quiet, but significant
way, the Pennsylvania Legislature offered a great incentive to enable PA
businesses to support Educational Advancement Efforts in the state two years
ago. This effort enables businesses to help ensure that quality educational
programs, such as the programs at Champion Christian School, will continue to be
available to serve lower income students. It is a tax credit (not just a
deduction) called the Educational Improvement Tax Credit. The Pre-K
program was added with an extra incentive to allow the first 10,000 to receive
100% credit then 90% after that. Because of the phasing out of corporate
taxes for Chapter C Corps Sub Chapter S, Limited Partnerships, and other Pass
through business entities were added which make almost every business that has
PA tax liablity eligible with the exception of Sole Propriatorships.
How to Apply
The process to receive tax credit is simple. Businesses send the Department of Community and Economic Development (DCED) a one-page application for the tax credit, which is available at www.inventpa.com. If there are funds available and the company does not owe back taxes, DCED will send an approval letter to the applicant. The company then has 60 days to make its donation(s) and 90 days to send proof of the donation(s) to DCED.
A business must complete and submit an EITC application annually with the DCED, which will then determine whether the firm qualifies for the credit. Tax credits cannot exceed the tax liability of a business for a given taxable year, and may not exceed $200,000 annually per business. Also, a tax credit must be applied in the taxable year the contribution is made.
Both Small and Large businesses are taking part in the program.
Companies can apply to be apart of the tax credit at any time. The application to do this is in the guidelines relating to corporations which are located at www.inventpa.com . The Department of Community and Economic Development (DCED), the agency overseeing the tax credit, will put these applications in random order on each day they are received. DCED will approve corporations until the annual cap is reached. The Board of Champion Christian School has established resources to help local faithful businesses take advantage of the effort and help Champion Christian School students at the same time.
Click on the following link to find out more
about this important program at Champion Christian School..
Tuition Assistance Information at CCS
If you’d like additional information on this , please call me at
724-455-2122 ext 103 or email me at info@champion.org
For additional Information on the EITC and other school choice news on The PA REACH web
site at:
http://www.paschoolchoice.org/reach/cwp/view.asp?a=1367&Q=568487&reachNav=|liabilityProprietorships