Educational Improvement Tax Credit (EITC) allows corporations to make excellent use of state tax incentives to benefit specific schools for the sole purpose of student scholarships.
Below is a list of these generous community businesses that dedicated EITC to Saints Peter and Paul School for the 2016-2017 academic year:
$15,000 from First Resource Bank
$17,000 from DNB First
$15,000 from Austill’s Rehabilitation Services, Inc
$15,000 from BLOCS (Business Leaders Organized for Catholic Schools)
$10,000 from DellaVecchia, Reilly, Smith & Boyd Funeral Home
$9,000 from Lamb McErlane PC
$6,800 from The Greater West Chester Chamber of Commerce
$8,500 from The Foundation for Catholic Education in Chester County
$5,000 from The Bridge Foundation
$3,000 from Answering Service for Directors Inc. Czachor Family
$1,200 from Sterling Services, Inc., Bob DiScuillo, CPA
The funds dedicated by these local businesses were available for distribution to qualifying families for the 2016-2017 academic year.
Numerous Saints Peter and Paul School families will benefit from the generous EITC gifts. If you are interested in applying for these funds, you apply using the Smart Aid application. Please see the Financial Aid section under the Admissions tab for more information.
Q: What is the Pennsylvania Educational Improvement Tax Credit?
A: The EITC was established in 2001 to provide businesses that pay PA taxes with a tax credit for their donations to nonprofit Scholarship or Education Improvement Organizations.
A one-time donation for K to 12 students can earn a 75% tax credit for a 1 year commitment or a 90% credit for a two year commitment. A one-time donation for Pre-K students can result in a 100% tax credit for the first $10,000; anda 90% tax credit for the remainder up to $100,000.
A business, or any of its operating subsidiaries, can receive up to $300,000 in tax credits annually.
Does Saints Peter and Paul School have EITC money available for 2017-2018?
Yes. Saints Peter and Paul School has already secured funds from some of this year’s donors. All EITC funds will be awarded to Saints Peter and Paul School students as tuition assistance. We are extremely thankful to all EITC donors and we hope to increase the EITC contribution for the 2017-2018 academic year to allow us to continue to help our families afford a Saints Peter and Paul School education.
Q: What Organizations utilize the Pennsylvania EITC?
A: Over 2,800 companies have benefited from the Educational Improvement Tax Credit. Although large companies participate in the program, most EITC contributors are small and mid-sized businesses.
Q: Who qualifies for the EITC?
A: To qualify for the credit, a business must pay one of the following Pennsylvania state taxes:
- Corporate Net Income Tax
- Capital Stock and Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
S Corporations may participate in EITC as well. Businesses may elect to pass through credits from the Personal Income Tax of S Corporation Shareholders or Partners in a general or limited partnership.
These donations make a genuine difference to students and their families. But An EITC-eligible contribution to students through BLOCS offers donors advantages as well:
- Charitable donations reduce the amount of taxable income
- Tax credits reduce tax bills dollar for dollar
- Giving students the chance to experience a high-quality education is an investment in tomorrow’s leaders and workforce
- Minimal cost for major impact
- Helps build community good will