EITC - Educational Improvement Tax Credit


Sample School District Support Letter
 

FY 2018-2019 deadlines for business applications:
 

May 15, 2018 - Business applications who have fulfilled their 2-year commitment and wish to reapply
                           in FY 2018-2019 to renew their 2-year commitment.

May 15, 2018 - Businesses who are in the middle of their 2-year commitment.

July 3, 2018 -    All other businesses including Pre-K business applications.

Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc. can now apply the same day as C-Corporations.  Applications must be submitted electronically using DCED's Single Application for Assistance weblink. Paper business applications will no longer be accepted. To start the application process, click the following link: www.esa.dced.state.pa.us/login.aspx

To review the EITC Application Desktop Guide - click Desktop Guide

To review the EITC Business Guidelines and Applications - click Guidelines

Applications will be approved until the amount of available tax credits is exhausted. A business that has been approved for tax credits and has agreed to make the same amount of contribution for two consecutive tax years must submit its application to receive its second year of tax credits to the Department no later than June 30 of the first program fiscal year in order to be assured that tax credits will be available for the second year of the contribution.

Applications for the second year of a two-year commitment will be accepted beginning May 15 and, if received by the Department on or before June 30, will be processed prior to any other applications for tax credits received by the Department.

Applications for the second year of a two-year commitment that are not received on or before June 30 will be processed on a first-come-first-served basis by day submitted, along with all other business applications received by the Department, with no assurance that tax credits will remain avail able at the time of processing.

For more information on the EITC tax credits or the application to DCED, please contact Amy Jansky
at 717-843-8028 or amy@jascpa.org.

How to use your state tax dollars to support education:

Does your company pay one of the following PA taxes?

Corporate Net Income Tax

Capital Stock Franchise Tax

Bank & Trust Company Shares Tax

Title Insurance Companies Shares Tax

Insurance Premiums Tax

Mutual Thrift Institutions Tax

If yes, your company may be eligible to receive tax credits which can be used to support approved educational organizations.

The Educational Improvement Tax Credit (EITC) is administered by the Department of Community & Economic Development (DCED) under Act 48 and awards tax credits to businesses that make contributions to scholarship organizations and/or educational improvement organizations that are on a list approved and published by DCED.

Junior Achievement is an approved educational improvement organization, therefore your tax dollars can help JA inspire the workforce of tomorrow!

Amount of Credits

A business will be approved for a tax credit equal to 75% of its contribution up to $300,000 per taxable year. If the business pledges the same amount of contribution to the organization for 2 consecutive years, the tax may be increased to 90% of the contribution, up to a maximum of $300,000 per taxable year.

For example: A contribution of $100,000 pledged to JA for 2 consecutive years would only require a $10,000 donation. Your state tax dollars will provide the rest of the contribution, allowing your donation to JA to reach a much higher level!

Application Process

Eligible businesses must submit a completed application to DCED. Applications can be downloaded below. Applications are accepted yearly beginning June 30. Applications are processed on a first-come-first-served basis by day submitted. Funds are limited, so it is imperative that your application is submitted on this day.

JA & EITC Fast Facts

  • JA of South Central PA is an approved EITC non-profit under the Educational Improvement Organization side of the tax credit program.
  • Making a 2-year pledge to JA makes your company eligible to receive a 90% tax credit, taking your contribution to a much higher level.
  • For example, to give a $100,000 contribution, $10,000 would be an out-of-pocket expense for your company. The remaining $90,000 would be your state tax money, redirected to JA through your
    2-year tax credit approval.
  • Contributions to JA through EITC help Junior Achievement  inspire more than 47,000 students each year. Every dollar you invest helps JA to reach more students.
  • We would be happy to have one of our financial officers share this information with your CFO. Please contact JA at 843-8028 or info@jascpa.org