Educational Improvement Tax Credit (EITC)
North Penn School District Educational Foundation (NPEF) has been approved as an Educational Improvement Organization (EIO) by the PA Department of Community and Economic Development (DCED). That means NPEF can accept Educational Improvement Tax Credit (EITC).
WHAT IS EITC?
EITC stands for Educational Improvement Tax Credit. The EITC program provides tax credits to eligible businesses contributing to Scholarship Organization, and Educational Improvement Organization and/or Pre-Kindergarten Scholarship Organization.
WHAT IS AN EIO?
EIOs are non-profit organizations that have been approved by DCED for participation in the EITC program. To become an EIO, the non-profit must apply to the DCED to show how their programs improved the educational opportunities for children. NPEF has been approved as an EIO.
WHY DONATE TO THE FOUNDATION?
It is a WIN-WIN-WIN opportunity! Your tax-deductible donation to the Foundation through the EITC program benefits your business, North Penn School District, and our NP students.
Your business WINS! Receive Pennsylvania tax credits equal to 75% for one-year commitment, up to $750,000 per taxable year or increase to 90% for two-year commitment.
North Penn School District WINS! The NPSD Educational Foundation receives new, active funding and partnerships with your business.
NP students WIN! NP students receive targeted, pertinent, meaningful educational programming that prepares them for the real world.
WHO QUALIFIES?
- Business who pay one or all of the following taxes qualify to participate in the EITC program:
- Personal Income Tax
- Capital Stock/ Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluded surplus lines unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fee under section 212 of the Insurance Company Law of 1921
WHEN DO YOU APPLY?
The deadline to submit your application for the EITC program:
- May 15: Business applicants who have fulfilled 2-year commitment and wish to reapply in FY 19/20 to their 2- year commitment
- May 15: Business who are in the middle of their 2- year commitment
- July 1: All other business including initial applicants and those applicants wishing submit and additional application on top of their previously submitted 2- year commitment
HOW DO TO APPLY?
Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system.
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.
