There's a simple way for Pennsylvania businesses to keep their state tax dollars in Northeastern Pennsylvania--instead of sending them to Harrisburg--to help students receive the kind of education their families believe is most appropriate for them.
How Is This Possible?
Enacted in 2001, the Pennsylvania Educational Improvement Tax Credit (EITC) program amended the public school code. Act 4 authorized the award of tax credits to businesses that make contributions of up to $200,000 to scholarship organizations. These scholarship organizations then designate funds as tuition assistance to qualified recipient schools like Abington Christian Academy. In fact, business donations to the EITC program have created thousands of scholarship dollars for Abington Christian Academy students.
How Does It Work?
Businesses may receive EITC tax credits according to the following schedule:
*Existing charitable deductions still apply with this credit, increasing the value of the tax credit.
|| 70% tax credit
|| *90% tax credit
||100% tax credit on first $10,000
90% tax credit on additional contributions
| not available
Enrolling Is Simple!
Follow three simple steps to help students in Northeastern Pennsylvania receive the best possible education.
Step 1: Identify if your business type is listed below or if you pay any of the following Pennsylvania taxes:
-Subchapter S Corps, Limited Partnerships, and Other Pass-through Organizations (filing PA Forms 25S or 65)
-Corporate Net Income Tax
-Capital Stock Franchise Tax
-Bank and Trust Company Shares Tax
-Title Insurance Company Shares Tax
-Insurance Premiums Tax
-Mutual Thrift Institutions Tax
-Surplus Lines Tax
You may be able to get up to 100% Pennsylvania tax credit on your business tax return . . . and still use the credit as a deduction on your federal return.
Step 2: Determine that you're going to support Abington Christian Academy.
Step 3: Fill out a one-page request form.
Select the appropriate tax credit form from the following options on the Pennsylvania state website. You can also call 610.286.1936 to have a specialist from our professional partner, PennGift Foundation, walk you through the request process. They even have a Certified Public Accountant on staff to help you calculate
A. The standard EITC Pre-K or K-12 Program
B. The Opportunity Scholarship Tax Credit Program: A special tuition assistance scholarship program designed to help students in the lowest 15% of failing public schools in the Commonwealth.
If tax credit funds are available and your company does not owe back taxes, the Department of Community and Education Development (DCED) will send you an approval letter to the applicant. You then have 60 days to make donation(s) and 90 days to send proof of the donation(s) to DCED.
Call the school office at 570.586.5270 to request help with the EITC program.
Thank you for considering keeping your tax dollars in Northeastern Pennsylvania and providing opportunities for families in the area to receive the education they need.