Corporations cansupport East Pennsboro Area School District through Pennsylvania’s EarnedIncome Tax Credit Program (EITC). Pennsylvania allows corporations to receiveup to a 90% tax deduction when they donate to the educational improvementorganizations (such as our Education Foundation). The EITC Program is overseenby the Department of Community and Economic Development’s Tax Credit Division.
How does it work?
When DCED approves abusiness application for EITC status, the business has 60 days to issue a checkto the approved EITC entity for the amount of the tax credited. The receivingnonprofit acknowledges in writing receipt of the check with the check numberand date received; that letter is sent to the business which then sends a copyto DCED to validate the contribution.
Why Should Businesses Participate?
Businesses cansignificantly reduce their liability for Pennsylvania taxes while they supportorganizations, like the East Pennsboro Education Foundation, which enhanceeducational opportunities for children. Additionally, by participating in theEITC program, an organization accrues the public relations benefit that occurswhen a company supports a worthy cause in the area where it does business.
How much of a tax credit can I get for my business?
The tax credit is a75%-90% credit against taxes owed. To gain the maximum 90% tax credit, acompany must provide a written two-year commitment of equal funding to aneducation foundation. Companies can effectively get a dollar-for-dollar creditfor an EITC donation because if a company has not maximized their percentage ofcharitable donations, they can also deduct their contribution on their federaltax returns.
A contribution of anyamount is welcome and may be a source of great pride for the business owner andemployees. Each gift, no matter the size, helps a student to receive the educationhe or she needs to reach personal potential and take a fulfilling, rewardingplace to society.
How do businesses apply for tax credit?
A one page applicationform is available through the Department of Community and Economic Development(DCED) and can be found by clicking here. You can also contact DCED at717-787-7120. The process is simple:
- Business completes one page application and submits it to the PA DCED on July 1.
- Businessreceives a letter of approval from the DCED.
- Business submits monetary contribution within60 days to the East Pennsboro Education Foundation.
- East PennsboroEducation Foundation provides business with acknowledgement of contribution.
- Businesssubmits acknowledgement to DCED.
- DCEDcommunicates with PA Dept. of Revenue and applicable tax credit is applied to business tax account.
- Credit istaken as a payment of taxes on businesses’ annual state tax return filing.
What this means for East Pennsboro EducationFoundation
The East PennsboroEducation Foundation is a DCED approved entity eligible to receive EITC contributions.At this time the following programs have DCED approval:
1. Education for the Arts
The Arts program at East Pennsboro has been chosen by the foundation to include an innovative program because of its benefit to the cultural experiences for the students, the enhancement of the curriculum and real-life theater experiences. Students will have an opportunity to work alongside the Artistsfrom Artist-In-Residence program with equipment to support the curriculum across a number of disciplines. Specific PA Education Standards will be addressed in the following areas: Art and Humanities and Reading, Writing, Speaking and Learning.
2. Work StudyExperience
The high school students are provided with diverse opportunities to experience theworld of work so that they can make informed decisions about their futures. Our“Work-Study Experience” gives seniors a chance to complete their academic program for a diploma while working in paid positions in their field ofinterest. Internships allow students to explore specific career interests through work-based assignments in fields such as healthcare, communication arts, hospitality and entertainment and technology. In addition, all special education students are required to have a transition plan that includes careerexperiences.
3. Advanced Placement Courses
The high school students have diverse opportunities to expand their education inspecialized areas in order to develop their skills and talents. Programsinclude: dual enrollment for HACC, Nurse’s aide certification program and CASA(Capital Area School for the Arts). The tuition for these programs rangeanywhere from $100 to $2,900 a year.
4. Artist in Residence
Incollaboration with a consortium of school districts and educational foundations, an Artist-in-Residence program benefits the students through the performing arts curriculum and cultural experiences. A variety of performancesare made available to the students through this program. Students not only gainfrom performances but also from Master Classes conducted by the performersduring the school day.