EITC PA TAX CREDIT (EITC) PROGRAM
Benefits Your Company and The Perkiomen School
A gift to The Perkiomen School can provide your company with a substantial tax credit through the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) Programs. By making a contribution to Perkiomen’s scholarship fund, your company can save in Pennsylvania tax as much as 90% of the value of the gift. Please take a few moments to review this opportunity with your company’s tax advisor. Your support of Perkiomen through the EITC and OSTC programs will help the school make its educational experience available to Pennsylvania’s most capable students no matter their financial situation.
The EITC Program:
- $60 million is available to Pennsylvania businesses on a first-come, first-served basis for contributions to scholarship organizations like The Perkiomen School.
- Applications for tax credits for program fiscal year 2013-14 (July 1, 2013 - June 30, 2014) will be accepted beginning July 1, 2013.
- Applicants in the middle of a 2-year commitment or who are finishing year 2 of 2 and wish to begin a new 2-year commitment may reapply May 15.
- Tax credits are given for 90% of the business' contribution to the Perkiomen scholarship fund, up to a maximum of $750,000 annually for a 2-year commitment.
- A business that agrees to make the same contribution to the scholarship fund for a single tax year may receive a tax credit equal to 75% of its contribution, again up to a maximum of $750,000 annually.
- The process is quick and easy. Just complete the easy online application and have a conversation with your accountant. Your business can contribute and benefit from the tax credit if your company expects to pay:
- PA Corporate Net Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Tax
- Title Insurance Tax
- Insurance Premiums Tax or Mutual Thrift Institutions Tax
- Personal Income Tax: S corporations, partnerships and other "pass through" businesses may choose the “pass through” option where the tax credit is applied to shareholders, members, partners or the business owner.
The OSTC Program:
OSTC specifically provides support for financial aid students from low-achieving school districts so that they may attend institutions that will help them reach their full potential, such as The Perkiomen School.
- While the programs are different from one another, the application process and benefits are the same.
- Both programs use the DCED Single Application for Assistance and both programs provide a tax credit worth up to 90% (for 2 years, 75% for a single year) for participating.
The budget and application for OSTC is separate from EITC, meaning businesses may apply for both programs within a given year.
Simply apply to the Department of Commerce and Economic Development (DCED) for the EITC and OSTC programs using the Single Application for Assistance. Apply Here. You may also call the DCED office at 717-787-7120.
For further information about earning EITC Tax Credits, including the “pass through” option, please call John Spurlock, Director of The Perkiomen Fund, 215.679.1157 or email@example.com.