Educational Improvement Tax Credit
The Pennsylvania Department of Community and Economic Development awards businesses with tax credits for making charitable contributions to an education improvement organization such as Big Impact Group of Schuylkill County. Businesses can get a tax credit of up to $750,000 on their Pennsylvania corporate tax liability. Learn more about how you can get involved below!
Without donations, more children will have to navigate the challenges of life without a much-needed mentor by their side - please help us help local children!
How does it work?
A tax credit equal to 75% of the total charitable contribution may be granted to a business providing proof of a donation during one taxable year. A tax credit of 90% of the total contribution may be granted if the business provides written commitment to contribute the same amount for two consecutive years. In many cases, claiming both Pennsylvania state tax and federal tax deductions could mean that your donation would result in nearly 100% tax savings for your business in the amount donated. The credit cannot exceed $750,000 per business annually, and it must be applied in the taxable year in which the contribution is made.
How do I apply?
Contact our office and we will walk you through the one page application from the PA Department of Community and Economic Development.
Which businesses are eligible?
To be eligible for EITC, a business must be authorized to do business in Pennsylvania and 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, or Mutual Thrift Institution Tax.
When is the deadline for applications?
The PA Department of Community and Economic Development begins processing applications on July 1 of each year, but tax credits are awarded on a first-come first-serve basis.
Do I have to reapply each year?
Applications for businesses that are applying for a second year of tax credits should be faxed beginning May 1 but no later than May 15. Applications for renewal will be processed first.
What happens once my business is approved?
You will have 60 days to make your contribution to Big Impact Group of Schuylkill County. We then submit proof of your contribution to you for submittal to the PA Department of Community and Economic Development. Your tax credit is effective on the first day of the taxable year in which the contribution was made.
For more information:
Please contact our office at 570.622.0174 or email us at email@example.com