Did you know. . . . On May 7, 2001, Pennsylvania passed an education tax credit aimed at corporations. The Educational Improvement Tax Credit (EITC), provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization and increases to 90% if the company commits to making the same donations for two consecutive years. Recently expanded to enable Subchapter S corporations, partnerships and LLC's to pass the credits through to their owner.
Did you know....The approval of the PA State Budget and School Code Bill for 2008-2009 FY brought about two major changes to the Educational Improvement Tax Credit (EITC) -- one of which allows S-Corporations, partnerships and other pass through entities to participate in the program. This change will allow thousands of more businesses to take part in the EITC. Your company or clients probably now qualify for this tax credit. Since July 1, approximately half of the $40 million allocated for EITC has been allocated.
Net effect:
Companies can effectively get a 90% tax credit for an EITC donation. If a company has not maximized their percentage of charitable donations, they can also deduct their contribution on their federal tax return. The net effect is that there may be $0 cost (beyond taxes that otherwise would be paid) to establish a scholarship at St. James Regional. Sound too good to be true? Click Here for more information about EITC.
If you are interested in turning some tax liability into a charitable contribution to provide scholarship dollars to SJRSC students please contact Ms. Eileen Somers at (610)583-3662.