PA Educational Tax Improvement Tax Credit Program
What is the EITC Program?
Through Pennsylvania's Educational Improvement Tax Credit (EITC) program, qualified businesses can make a donation to the Woodlands Foundation and receive tax credits equal to a percentage of their gift.
The Woodlands Foundation is an approved Educational Improvement Organization (EIO) in the EITC program. Gifts through the EIO program enable the Woodlands to provide year-round programming to individuals with special needs and chronic illness throughout the region.
Is Your Company Eligible?
A company is eligible to donate to the Woodlands through EITC if the company pays one of the following taxes:
Corporate Net Income Tax
Capital Stock Franchise Tax
Bank and Trust Company Shares Tax
Title Insurance Companies Share Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax
The Pennsylvania Department of Community and Economic Development determines the eligibility of businesses as well as educational improvement organizations.
What Steps Must a Company Take to Participate in EITC?
A company interested in giving to the Woodlands through the EITC program must complete an application form. The form is available by calling the Department of Community and Economic Development at (717) 787-7120 or accessing the PA Department of Economic Development's website online.
When Should a Company Apply?
Both new and renewing EITC business participants receive approval on a first-come, first-served basis. When the tax credits given to organizations equals the maximum allowed to be credited for the year, the Department of Community and Economic Development will close the EITC opportunity until the following year.
**The EITC credit limit for the EIO program is often reached one or two days after applications are accepted. After that time, the Department of Community and Economic Development can no longer offer EITC credits for the fiscal year. However, in the last few years, the credit limit for the EITC EIO program has not been reached.
The first day you can apply depends on the fiscal year in which you would like to participate.
Fiscal year 2011-12: Submit your application so that it reaches the Department of Community and Economic Development on the first day that applications are accepted. Typically, that day is July 1.
Fiscal year 2011-12: If your business participated in EITC during the 2010-11 fiscal year, and you would like to renew for fiscal year 2011-12, the first day you may submit your renewal application is May 1, 2011.
How Can My Company Benefit?
The maximum tax credit that a participating company will receive through an EITC donation to the Woodlands is $300,000.
The Department of Community and Economic Development calculates the tax credit based on the length of the business' EITC commitment to the Woodlands.
One-year contribution: A business that makes a one-year EITC contribution to the Woodlands receives a tax credit equal to 75% of the donation.
Two-year contribution: A business that makes a two-year contribution to the Woodlands receives a tax credit equal to 90% of the donation. A two-year commitment must be made in writing and accompany the donation.