PA Educational Improvement Tax Credit (EITC) Program
Elizabethtown College is an approved Educational Improvement Organization (EIO) in Pennsylvania's Educational Improvement Tax Credit Program. This program provides companies with a direct tax credit of up to 90 percent for a two year commitment toward the amount a business owes in state taxes. The program leaves companies with a much smaller state tax bill while providing educational resources and programming to more than a thousand students and teachers in our region.
SIM provides teachers and students in public school districts with access and training on equipment and lab exercises in the subject areas of biology, biotechnology, biochemistry, and environmental education. During the 2010-2011 academic year SIM:
- Provided 305 pieces of laboratory equipment that was utilized by 65 teachers and 1,509 students for 32 weeks;
- Access to the equipment allowed classes to add 35 laboratory experiments to their courses;
- Equipment was utilized by 54 different sections of students and in 13 different Advanced Placement courses.
How does it work?
Companies receive a 75 percent tax credit for a one year commitment and a 90 percent tax credit for making a two year commitment. Companies then owe state taxes of either 25 percent or 10 percent. The process involves:
- Company registers online and submits the Single Application for Assistance form found on the www.newpa.com website. If interested in supporting Elizabethtown College as an Educational Improvement Organization (EIO), the company notes this under the EITC Program Commitement Slections portion of the electronic form.
- Company receives approval from DCED and has 60 days to make their donation to Elizabethtown College.
- Elizabethtown College will provide an official receipt to the company within a week of receiving the contribution.
- Within 90 days the company submits the proof of contribution receipt letter from Elizabethtown College to the DCED to show it has fulfilled the commitment.
Is participation time consuming and what state taxes apply?
Participation is a quick and easy and involves filling out the Single Application for Assistance found at www.newpa.com.
If your business is pays any of the following taxes it is eligible to participate: Corporate Net Income Tax, Capital Stock Franchise Tax, Bank and Trust Company Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax, or Mutual Thrift Institutions Tax.
Important Note: Applications for FY14/15 EIO funding may be submitted on July 1, 2014. Due to the popularity of this program interested businesses are encouraged to submit their applications on July 1. Please call us if you are interested in having our staff deliver them for your company.
For More Information
For specific information on how this program can benefit your business please contact your accountant and/or financial advisor.
To learn more about Elizabethtown College's EIO programs please contact Lesley Finney, Executive Director Foundation & Government Relations at 717-361-1445.