Educational Tax Credits for Businesses
Considering an EITC gift to Champion Christian School? Click here
Success Stories? Click here
In the News: School Choice Article
Redirect your business tax dollars to benefit the local community! Follow three simple steps to make this happen.
Step 1: Decide if you pay any of these PA taxes. Corporations who qualify are those who pay one or all of the following taxes:
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
You can get up to 100% PA Tax Credit on your Business Tax Return.....
and still use it as a deduction on your Federal Return!
The Tax Credit was extended to Businesses to include Subchapter S corporations and other pass-through 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 pass-through tax funds that you would normally pay to the State in PA Business Taxes to Qualified Scholarship Organizations like the Centers Scholarship Organization. This program has limits on the amounts of credits issued. 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 send an email to info@champion.org and put EITC TAX CREDIT in the Subject Line to make sure it doesn't get caught in a spam filter.
Step 2: Decide if you want to apply. Here's how:
View or get an application to apply. (Note this application is from DCED, but contains only the appendex sections that apply to the Center's K-12 and Pre-K Scholarship Organizations.) This application is literally just ONE page. 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.
Click here to see a sample tax calculation sheet that SubChapter S, Limited Partnerships, and other Pass Through Business entities can utilize. Email us if you need more information. This is documentation provided by an accounting firm specializing in PA Business Taxes.
The Goal is to allow families to choose the right school for their child without letting economics become the deciding factor.
Step 3: Consider the Center's Scholarship Organization for your GiftThere are two tax credit programs available that the Center participates in:
1. A K-12 Tuition Tax Credit for students in Elementary School and High School
2. An Early Education Tax Credit for students in Preschool.
3. Champion Christian Schools are our primary focus but we also manage funds for Covenant Presbyterian Church Preschool in Ligonier, Wilson Christian Academy, and Somerset Christian School and Preschool.
Indian Creek Valley Christian Family and Childrens Center Scholarship Fund Scholarship Organization
Overview of the Process:
July 1st: : Is the first day the State (DCED) is accepting applications for the tax credit. Applying for the csubchapter not mean you have to use it at this point. It means it is awarded and available for use. They will continually award credits (then later withdraw them if they are not used in time for Churcheason and re-issue them) until the credits are all actually awarded and taken.
Date Credit is Awarded: For all of the applications that come in on July 1st they are treated equally as having arrived at the same time. The State goes through these and then begins to issue credit award letters. For the applications submitted in July, sometimes this issubchapterAug or Sept.
Donation made the Center's Scholarship Program: The actually check has to be received in our office and receipted within 60 days of the Credit being awarded. This is commitment time for your business. The donation that you make can be for part of or all of your tax credit award, but not more.
End of Business Year: You will apply your credit to your tax return, and utilize anChurcheral gift portion that you can utilize.
Want to hear from some of the businesses that have supported our fund?
Champion Christian School, a program of the Christian Family & Childrens Center, is committed to Academic excellence within a nurturing and distinctly Christian atmosphere. The Center's 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, Wilson Christian Academy, and Covenant Christian Preschool for donors who want their funds to go there. The Scholarship Fund qualifies for the EITC tax income credit.
Click on the following
link to find out more about this important program at Champion Christian
School..
Tuition
Assistance Information at CCS
Need Additional information?
Beginning July 1- Applications are processed on a first-come-first-served basis...
"For businesses, EITC is an attractive economic incentive; for low-income families to send their children to private schools, it is a godsend." - Bruce Barron
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 organization 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 & students it is simply reallocating your tax dollars to the local community.
Call Merle Skinner at 724-455-2122 ext 103 e-mail us at info@champion.org
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 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
several 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. 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 on our website here.
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 credit per business. Also, a tax credit must be
applied in the taxable year the contribution is made.
In 2009 however the fund was cut for the first time. It will make this credit very competitive. We encourage businesses to act quickly and decisively and to utilize the Center staff for any support we can provide for you in this program. 2010 is scheduled for another reduction.
Both small and large businesses are taking part in the program.
Companies can apply to be a part of the tax credit at any time. The application to do this is in the guidelines relating to corporations which are located at http://www.champion.org/development/eitc/dcedapplication.pdf . The Department of Community and Economic Development (DCED), the agency overseeing the tax credistudents 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 Cemailan School has established resources to help local faithful businesses take advantage of the effort and help Champion Christian School students at the same time.
If youd 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