Educational Improvement Tax Credit
Lehigh Children’s Academy, a service of Via of the Lehigh Valley, Inc.
Approved as a Kindergarten Scholarship Organization and Pre-K Scholarship Organization
The Educational Improvement Tax Credit (EITC) is administered by the Department of Community and Economic Development (DCED). Tax credits may be awarded to operating businesses that make contributions to School Age Scholarship Organizations and/or Educational Improvement Organizations and/or Pre-K Scholarship Organizations contained on a list published by the Department. Lehigh Children’s Academy, a service of Via of the Lehigh Valley, Inc. is an approved Kindergarten Scholarship Organization and Pre-K Scholarship Organization.
Business Application Timeline
- May 15 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 14/15 to renew their 2-year commitment.
- May 15 – Businesses who are in the middle of their 2-year commitment.
- July 1 – All other businesses including Pre-K business applications.
Pass-through entities, such as S-Corporations, Partnerships, LLs, etc., can now apply the same day as C-Corporations. Applications must be submitted electronically using DCED’s Single Application for Assistance. Paper business applications will no longer be accepted. See the business application guide in the box above.
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Funding – Scholarship Organization for Kindergarten
Tax credits equal to 75 percent of its contribution up to a maximum of $750,000 per taxable year. This can be increased to 90 percent of the contribution, if business agrees to provide same amount for two consecutive tax years.
Funding – Pre-Kindergarten Scholarship Organization
Tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.
For purposes of the EITC, a “contribution” from a business is a donation of cash, personal property or services the value of which is the net cost of the donation to the donor or the pro rata hourly wage, including benefits, of the individual performing the services. No tax credits shall be approved for activities that are part of the applicant business’s normal course of business.
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes:
- 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
- Insurance Company Law of 1921
- Personal Income Tax of S corporation shareholders or Partnership partners
An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter. Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and are not refundable or transferable.
How to Apply – Businesses
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.
How to Make Your Gift
Gifts can be made directly to Via of the Lehigh Valley, Inc following the guidelines outlined below. Please contact Michele Grasso to make your gift:
Michele Grasso, Vice President of Development
Via of the Lehigh Valley
336 W. Spruce Street, Bethlehem, PA 18018
M.Grasso@ViaNet.org | 484-893-5399 | Fax: 610-867-5385
Upon receipt of written notification from the Department that the business has been approved for tax credits, the business must make its contribution(s) to an approved Scholarship Organization(s) and/or Educational Improvement Organization(s) and/or Pre-K Scholarship Organization(s) within 60 days of the date of the letter, and must provide proof of the contribution in the form of a written acknowledgment from the organization, to the Department within 90 days of the date of the approval letter. A business will only receive tax credits for donating to the type of organization and amount that is specified in the application and approval letter.
For services donated to an organization that will not be performed until after the 60-day period, the business must submit a copy of a letter sent by the business to the recipient organization, dated within 60 days of the date of the approval letter and signed and accepted by the recipient organization committing the business to donate the services described. The Department of Revenue will consider tax credits awarded under this program to be effective on the first day of the taxable year in which the contribution was made.
To learn more about how you can support Via, contact:
Michele Grasso, Vice President of Development
M.Grasso@ViaNet.org | 484-893-5396