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Education Foundation » EITC

EITC

EITC Program
Corporations can support East Pennsboro Area School District through Pennsylvania’s Earned Income Tax Credit Program (EITC). Pennsylvania allows corporations to receive up to a 90% tax deduction when they donate to the educational improvement organizations (such as our Education Foundation). The EITC Program is overseen by the Department of Community and Economic Development’s Tax Credit Division.

 

How does it work?
When DCED approves a business application for EITC status, the business has 60 days to issue a check to the approved EITC entity for the amount of the tax credited. The receiving nonprofit acknowledges in writing receipt of the check with the check number and date received; that letter is sent to the business which then sends a copy to DCED to validate the contribution.

 

Why Should Businesses Participate?
Businesses can significantly reduce their liability for Pennsylvania taxes while they support organizations, like the East Pennsboro Education Foundation, which enhance educational opportunities for children. Additionally, by participating in the EITC program, an organization accrues the public relations benefit that occurs when a company supports a worthy cause in the area where it does business.

 

How much of a tax credit can I get for my business?
The tax credit is a75%-90% credit against taxes owed. To gain the maximum 90% tax credit, accompany must provide a written two-year commitment of equal funding to an education foundation. Companies can effectively get a dollar-for-dollar credit for an EITC donation because if a company has not maximized their percentage of charitable donations, they can also deduct their contribution on their federal tax returns.

 

A contribution of any amount is welcome and may be a source of great pride for the business owner and employees. Each gift, no matter the size, helps a student to receive the education he or she needs to reach personal potential and take a fulfilling, rewarding place to society.

 

How do businesses apply for tax credit?
A one-page application form is available through the Department of Community and Economic Development (DCED) and can be found by clicking here. You can also contact DCED at717-787-7120. The process is simple:

  1. Business completes one page application and submits it to the PA DCED on July 1.
  2. Business receives a letter of approval from the DCED.
  3. Business submits monetary contribution within60 days to the East Pennsboro Education Foundation.
  4. East Pennsboro Education Foundation provides business with acknowledgement of contribution.
  5. Business submits acknowledgement to DCED.
  6. DCED communicates with PA Dept. of Revenue and applicable tax credit is applied to business tax account.
  7. Credit is taken as a payment of taxes on businesses’ annual state tax return filing.

 

What this means for East Pennsboro Education Foundation
The East Pennsboro Education Foundation is a DCED approved entity eligible to receive EITC contributions. At this time the following programs have DCED approval:

1. Education for the Arts
The Arts program at East Pennsboro has been chosen by the foundation to include an innovative program because of its benefit to the cultural experiences for the students, the enhancement of the curriculum and real-life theater experiences. Students will have an opportunity to work alongside the Artists from Artist-In-Residence program with equipment to support the curriculum across a number of disciplines. Specific PA Education Standards will be addressed in the following areas: Art and Humanities and Reading, Writing, Speaking and Learning.

2. Work Study Experience
The high school students are provided with diverse opportunities to experience the world of work so that they can make informed decisions about their futures. Our "Work-Study Experience” gives seniors a chance to complete their academic program for a diploma while working in paid positions in their field of interest. Internships allow students to explore specific career interests through work-based assignments in fields such as healthcare, communication arts, hospitality and entertainment and technology. In addition, all special education students are required to have a transition plan that includes career experiences.

3. Advanced Placement Courses
The high school students have diverse opportunities to expand their education in specialized areas in order to develop their skills and talents. Programs include dual enrollment for HACC, Nurse’s aide certification program and CASA (Capital Area School for the Arts). The tuition for these programs ranges anywhere from $100 to $2,900 a year.

4. Artist in Residence
In collaboration with a consortium of school districts and educational foundations, an Artist-in-Residence program benefits the students through the performing arts curriculum and cultural experiences. A variety of performances are made available to the students through this program. Students not only gain from performances but also from Master Classes conducted by the performers during the school day.