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EITC

Earned Improvement Tax Credit Program

Who Qualifies?

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 
  • or Personal Income Tax of S corporation shareholders or Partnership partners
 Business Owners can Contribute State Tax Dollars to St. Peter Cathedral School

If you’re a business owner, you can reduce your state tax liability by making contributions to St. Peter Cathedral School through the Diocese of Erie Star Foundation.

The Pennsylvania Educational Improvement Tax Credit Program enables your business to:

  • Receive a tax credit equal to 75% of your contribution to the STAR Foundation, up to a maximum of $300,000 per taxable year. 
  • Increase the tax credit to 90% of your contribution if the business agrees to provide the same amount of contribution to an organization for two consecutive years. 
  • For contributions for pre-kindergarten scholarships, receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $150,000 annually.

All you have to do is complete and submit an EITC application with the PA Department of Community and Economic Development (DCED), which will then determine whether your business qualifies for the credit. You should receive a confirmation letter (generally within 10 business days). Once confirmation is received, you have 60 days to make a donation to the STAR Foundation in the name of St. Peter Cathedral School. (Any funds not designated will be distributed throughout the diocese.)

Also, please notify SPCS of your contribution.

The Real Impact of Participating in the EITC Program

The Education Improvement Tax Credit Program (EITC) is a unique program that allows PA businesses to make a charitable gift based on the amount of state taxes it pays. In return, the business receives a 90% tax credit. A gift of $10,000 to St. Peter Cathedral School earns a $9,000 tax credit for the business. Moreover, the gift can then be claimed on the business’s federal tax return. Thus, a gift of $10,000 to SPCS will cost your business less than approximately $750.00.

The state of PA has extended this program to more businesses - all Subchapter S Corporations, LLC, Limited Partnerships, and General Partnerships can participate in the program.

All tax credit gifts made to SPCS are administrered through the Diocese’s scholarship program called the STAR Foundation. A company must designate St. Peter Cathedral School as the recipient of the gift when applying. Any gifts that are restricted for St. Peter Cathedral School goes directly to our students. This fund provides numerous students with financial aid in the form of scholarships to St. Peter Cathedral School. It helps puts a SPCS education within reach of families who otherwise might not be able to afford one.

Please consider partnering with St. Peter Cathedral School to direct some of your business tax dollars to this program.

Though the State puts limits on this program, there are currently millions of dollars that could be allocated to St. Peter Cathedral School. The more businesses that participate in this program, the more affordable SPCS becomes to families.

If you would like more information or have questions regarding the ETIC Program, please contact SPCS as soon as possible as the application must be sent in July 1 for most entities. Ask for Jennie Hagerty, Advancement Director, 814-453-6677 x 25 or visit the PA School Choice online.

Details are available from the PA state website, or by clicking here.

Businesses can download the 2011 form, here.

Information for accountants can be found here.

 

For more information

Contact: Jennie Hagerty, Director of Advancement
Phone: (814) 453-6677 ext 25
Fax: (814) 456-1351