Gifts for Tax Credit - It's a WIN-WIN
A gift to St. Aloysius Academy can provide your company with a substantial tax credit through the Educational Improvement Tax Credit (EITC) as well as the Opportunity Scholarship Tax Credit (OSTC) programs. By making a contribution to St. Aloysius Academy's scholarship fund, your company can save as much as 90% of the value of the gift in Commonwealth of Pennsylvania tax.
What companies are eligible?
Any C corporation or S corporation that pays the following Pennsylvania state taxes is eligible for the EITC program:
*Corporate Net Income Tax
*Capital Stock Franchise Tax
*Bank and Trust Company Shares Tax
*Title Insurance Companies Shares Tax
*Insurance Premiums Tax
*Mutual Thrift Institution Tax
*Personal Income Tax of S corporation shareholders or Partnership Shareholders
What is the process?
Tax credits are available on a first-come, first-served basis for contributions to approved scholarship organizations like St. Aloysius Academy.
*Applications for tax credits for program year 2016-2017 are accepted beginning July 1, 2016.
*Renewal applications for 2 year commitment donors are accepted beginning May 15, 2016.
*Tax credits are given for 75% of your business' contribution to St. Aloysius' financial aid program up to a maximum of $750,000 annually.
*A business that agrees to make a contribution to St. Aloysius Academy for two consecutive tax years may receive a tax credit equal to 90% of its contribution.
How are these programs different?
Donations made through the EITC support students living in low-income households with financial needs; gifts given through the OSTC support students who live in school districts ranked in the bottom 15% of schools in the Commonwealth of Pennsylvania. The tax benefits of these programs are exactly the same.
How can I get my compay involved?
Pennsylvania businesses can begin applying for EITC credits through DCED's electronic single application system. DCED will no longer require applicants to mail the signed signature page.
The business application guide explains the process of applying. Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day's applications. Applications will be approved until the amount of available tax credits is exhausted.
For a detailed look at this opportunity, the Commonwealth has provided an EITC Business Guidelines and Application which can be found at: http://www.newpa.com/eitc
For program inquiries or delivery of applications via mail, fax, email or in person:
Department of Community and Economic Development
The Educational Improvement Tax Credit Program
Center for Business Financing - Tax Credit Division
400 North Street, 4th Floor
Commonwealth Keystone Building
Harrisburg, PA 17120-0225
A Step-by-Step Guide for Accountants: Understanding the Educational Improvement Tax Credit Program is available free of charge by calling 717-238-1878 or emailing email@example.com
Who does this benefit besides the businesses?
The Opportunity Scholarship Tax Credit Program provides scholarships to eligible students to attend an approved public or nonpublic school of their choice. St. Aloysius Academy is approved. Students, who live within the attendance boundaries of a low-achieving school as determined by the Pennsylvania Department of Education, are eligible to receive a scholarship. For school year 2015-2016, their household income can be no greater than $76,350, plus $15,2670 for each dependent member of the household. To view the current list of low-achieving schools, visit the PA Department of Education's website www.education.pa.gov and click on the Opportunity Scholarship Tax Credit Program icon for a list of Low-Achieving Schools.
St. Aloysius Academy has been designated a scholarship recipient organization by the PA Department of Education. Parents/students can select St. Aloysius Academy as their scholarship recipient organization and submit their application directly to St. Aloysius Academy.
Contact Michael Paolucci, Mission Advancement Director for more information - 610-525-1670 x318, firstname.lastname@example.org
The fiscal code will be running today in the Pennsylvania Legislature. The bill will include the retroactive credit language for the 2015-2016 year, where businesses will be able to utilize their FY 2015-2016 EITC/OSTC credits in the correct tax year. The pertinent information can be found on HB 1327, at the bottom of page 5.
"Tax credits awarded under Article XVII-F of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in fiscal year 2015-2016 to a business firm making an approved contribution to a scholarship organization, prekindergarten scholarship organization, opportunity scholarship organization or educational improvement organization may be used in the taxable year in which a completed application was submitted by the business firm or the taxable year in which the contribution was made by the business firm, as determined by the business firm."
- HB1327 (Page 5)
St. Aloysius Academy | 401 S. Bryn Mawr Ave., Bryn Mawr, PA 19010 | Phone: 610-525-1670