Pennsylvania businesses have the ability to directly support programs that help area school students learn about employability skills and explore career opportunities. Pennsylvania’s Educational Improvement Tax Credit (EITC) program has been popular among employers for many years and expanded to provide more funding for educational programs. Businesses interested in participating should be prepared to apply on Wednesday, July 1st, 2020.
Businesses MUST file on Wednesday, July 1, 2020 if they…
– are entering the EITC program for the first time
– are past participants but have been dropped from the program
– are currently participating, but want to apply for additional tax credits above your current allocated amount
Those businesses that support Educational Improvement Organizations (EIOs) like The Foundation of the Columbia Montour Chamber of Commerce know that the program has been oversubscribed for many years. Tax credits are typically exhausted on May 15th, the first eligible day current participants can apply. However, businesses are still encouraged apply because businesses drop out of the program every year and there may be credits available. Additionally, due to the COVID-19 pandemic and subsequent economic downturn, there is a greater possibility that credits will be available, so applications should be submitted on July 1! There is no penalty or obligation for applying.
Businesses may not file before July 1, but may fill out the application ahead of time, save it, and then submit it any time between 12:01 am – 11:59 pm on July 1st. It’s important to file on this exact day due to the popularity of the program.
WHO IS ELIGIBLE TO RECEIVE TAX CREDITS?
All businesses authorized to operate in Pennsylvania who are subject to one or more of the following taxes:
• Personal Income Tax
• Capital Stock/Foreign Franchise Tax
• Corporate Net Income Tax
• Bank Shares Tax
• Title Insurance & Trust Company Shares Tax
• Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
• Mutual Thrift Tax
• Malt Beverage Tax
• Retaliatory Fees under section 212 of the Insurance Company Law of 1921
WHAT’S IN IT FOR ME?
Businesses that contribute to an approved EIO, SO, or Pre-K organization will receive a credit on their Pennsylvania tax liability in the current fiscal year. For businesses that participate for one year, the tax credit is 75 percent of your contribution up to a maximum of $750,000 per taxable year. If a business makes a two-year commitment, the tax credit increases to 90 percent of the contribution, again up to $750,000 per year. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed, and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.
WHAT PROGRAMS ARE BEING OFFERED?
Currently, The Foundation has the following programs approved as an EIO:
• Classroom in the Hospital
• Classroom on Main Street
• What’s So Cool About Manufacturing
• STEM Magnet Program in partnership with Bloomsburg University
• Annual STEM Competition
• Tech Theatre in partnership with Bloomsburg Theatre Ensemble
• Educator in the Workplace
• Pennsylvania Free Enterprise Week (PFEW)
• PFEW’s Stock Market Game
• EVERFI Financial Literacy
Additional programs being developed include a youth leadership program and additional Classroom in the Workplace programs including Classroom in the Courtroom.
For more information on the EITC program, click here.
For the complete application guidelines, click here.
For additional information about Foundation programs or to discuss how your organization can be involved, contact Jeff Emanuel, Director of The Foundation, at 570-784-2522 or [email protected]