Educational Improvement Tax Credit (EITC)
How Can Your Company Help OMPH School with “Free” Money!
It sounds too good to be true, but it is! If you own a business, you may qualify for a tax credit and benefit Catholic education at the same time.
In short, in May of 2001, by an overwhelming bi-partisan majority,
Pennsylvania’s legislature made history by becoming the first state to pass an education tax credit aimed at PA corporations. In essence, the
Educational Improvement Tax Credit (EITC) allows qualifying corporations in Pennsylvania to redirect their
Pennsylvania tax dollars to qualifying educational institutions, including OMPH School.
Eligible businesses may take a tax credit of up to 90% of the
amount they contribute to the scholarship fund.
The Diocese of Harrisburg established the Neumann Scholarship Foundation to receive funds contributed under the EITC.
The Neumann Scholarship Foundation provides tuition assistance to schools in the Diocese and, when designated,
directly to Our Mother of Perpetual Help School.
What Businesses Are
Eligible?
All businesses authorized to do business in PA that pay one or more of the following taxes:
* Corporate Net Income Tax
* Capital Stock Tax
* Bank and Trust Company Shares Tax
* Title Insurance Companies Shares Tax
* Insurance Premiums Tax
* Mutual Thrift Institution Tax
* Pennsylvania Income Tax Liability Tax
How Does It Work?
Tax Credits may be applied against the tax liability of a business for the tax year
in which the contribution was made. Tax credits equal to 75% of its contribution up to a maximum of $300,000 per taxable year;
can be increased to 90% of the contribution, if business agrees to provide the same amount for two consecutive tax years.
In certain circumstances, the net effect of the EITC tax credit is a dollar for dollar reduction in the
business’ PA tax obligations – this makes the contribution to OMPH School a “costless” program for the participating businesses!!
How Does a Business Apply?
Click on the attached one page
application and
instructions outline the process.
But Hurry! Applications are processed on a first-come-first-served basis by day submitted.
Need more information?
Talk to your accountant about this win-win program!
Visit
on the web at
http://www.paschoolchoice.org.
Call the school development office at 738-2414.