President’s Message: Empowering Your Community Through PA Tax Credit Programs
At the Chamber, we take pride in helping members find great resources. We love it even more, though, when we can connect members to resources that help them grow their business AND help the community. Today, I'm pleased to remind you about two powerful financial resources available to Pennsylvania businesses: the Neighborhood Assistance Program (NAP) and the Education Improvement Tax Credit (EITC) Program. If you're unfamiliar, these programs offer businesses an opportunity to reduce tax liability while contributing to economic development, workforce readiness, and education.
The timing of this message is significant - in the coming weeks, the Bloomsburg Area YMCA and our friend John Coates at Forest and Field will host Paul Macknosky, Regional Director of the PA Department of Community and Economic Development, for an evening seminar about NAP. The event will include a program and light refreshments (learn more here). To be frank, we think the information Mr. Macknosky will provide is so important that we don't want to compete for your time - and we won't be scheduling a Business After Hours for that evening. Better yet, Mr. Macknosky is also the region's top expert on EITC, making his appearance a perfect time for you to consider how your goals may align with these programs.
Let's dive in with a quick overview.
The Neighborhood Assistance Program (NAP)
The NAP is designed to encourage businesses to support specific projects to bring about community revitalization and can impact initiatives such as affordable housing, job training, crime prevention, and neighborhood revitalization. By contributing to nonprofit organizations engaged in community development through NAP, businesses can receive tax credits ranging from 55% to 80% of their contribution amount, depending on the project’s scope and impact. These funds must be identified early on in partnership with the applying nonprofit. As such, nonprofits have taken an active role in sharing details about their future projects up front.
The Education Improvement Tax Credit (EITC) Program
The EITC program provides tax credits to businesses that contribute to eligible educational organizations (Education Improvement Organizations), scholarship organizations, and pre-Kindergarten programs. Companies can receive tax credits covering up to 90% of their donation when committing to multiple years of contributions. The Foundation of the Columbia Montour Chamber of Commerce and several other community organizations are approved to offer scholarships and/or programs that support students outside the typical classroom experience and appear on a list of approved organizations.
Examples of meaningful and approved programs include the Chamber Foundation's partnerships for "What's So Cool About Manufacturing?", "Pennsylvania Free Enterprise Week". the "S.E.A.L. Challenge (STEM Contest)", and Brighter Financial Futures Financial Literacy programs for meaningful offerings. Tax credits can go a long way. The Chamber Foundation has also been a source for improvements inside the local school districts, working with EITC donors to fund equipment purchases for local school theater programs and departments through the "Tech Theater" program (to the tune of more than $1 million) and in support of CTE learning objectives through programs like the BSA's Learning for Life Career Exploring program.
Through EITC and especially the Chamber Foundation, businesses can directly support workforce development by funding programs that equip students with essential skills for future careers. By strengthening education, businesses help cultivate a highly skilled workforce, ensuring a pipeline of prepared employees for years to come. We've created a quick and easy EITC Fact Sheet and a program guide that might help you get a better idea of the possible impact of the tax credit program.
Why Business Owners Should Take Advantage
These tax credit programs allow businesses to maximize their financial resources, enhance their corporate social responsibility, and contribute to strengthening our local economy. Businesses that participate in community and educational support efforts often see increased goodwill, stronger customer relationships, and a more engaged workforce. The Columbia Montour Chamber of Commerce is here to guide you in navigating these programs and leveraging them for both your benefit and the benefit of our community, and now is the best time to learn more. Contact us today for more guidance about how your business can participate and drive positive change for our region’s future.