Overview

The Educational Improvement Tax Credit (EITC) is a state program that allows eligible businesses to receive up to a 90% tax credit on contributions to an EITC scholarship organization. The tax credits to eligible businesses can contribute to a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization. In 2014, Pennsylvania’s EITC legislation was amended to allow certain individuals (rather than only businesses) to participate in the EITC tax credit program through what is called a Special Purpose Entity (SPE).


The majority of our tuition assistance fund is underwritten by the EITC program.

The Impact of EITC

SWS provides over $100,000 annually in tuition assistance to over 35% of our student body. The majority of our tuition assistance fund comes from the EITC program.  In 2019, five donors contributed $41,500 to make this assistance possible!  Please consult your own tax professional to ensure that the EITC/SPE program fits your personal situation.

 

Turn your Taxes into Tuition Assistance!

You or your company can receive a substantial tax credit just by giving a gift to the Susquehanna Waldorf School through the Pennsylvania Educational Improvement Tax Credit Program (EITC)!

Any Pennsylvania tax-paying business or individual can redirect a portion of their tax liability to the Susquehanna Waldorf School as a philanthropic gift for financial aid.

The EITC program gives you the opportunity to decide where your state taxes go – by redirecting your tax dollars the Susquehanna Waldorf School, you will give the gift of education to aspiring Waldorf students.

 

Business Application Timeline

  • May 15, 2020 – Business applicants who have fulfilled their 2-year commitment and wish to reapply to renew their 2-year commitment.
  • May 15, 2020 – Businesses who are in the middle of their 2-year commitment.
  • July 1, 2020 – All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment.

EITC Guidelines
Business Application Guide

Pass-through entities, such as S-Corporations, Partnerships, LLCs, 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 above.

For Businesses – Is My Business or my Employer Eligible?

The following types of businesses are often eligible to participate in the EITC program:

  • S-Corps
  • C-Corps
  • LLCs
  • Limited Partnerships

Is your business authorized to operate in Pennsylvania?

Do you pay one of the following taxes?

  • Corporate Net Income Tax
  • Capital Stock Franchise Tax
  • Bank & Trust Company Shares Tax
  • Title Insurance Company Shares Tax
  • Insurance Premiums Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
  • Mutual Thrift Institution Tax
  • Malt Beverage Tax

If you answered YES – you are eligible to register and apply.

 

How Does EITC Benefit My Business?

Your business receives:

  • 90% state tax credit for 2-year commitment (renew annually)
  • 75% state tax credit for 1-year commitment (renew annually)
  • Credit against PA Taxes – Tax reduction is dollar for dollar against tax liability
  • Federal Tax Deduction – Reduction of net income due to charitable contribution of at least 10% (possibly more).

A company or individual can receive PA state tax credits equal to 75% of its contribution up to a maximum of $750,000 per taxable year. This can be increased to 90% of the contribution if a company agrees to provide the same amount for two consecutive tax years.

For example, donating $10,000 a year to the Susquehanna Waldorf School for two years will earn you a tax credit of $9,000 per year, plus the ability to claim $1,000 as a charitable deduction.

 

For Individuals – Am I Eligible?

Special Purpose Entities (SPEs) now make this process easy for you! Individuals have the opportunity to participate fully in the EITC Programs by joining an SPE.

  • Do you earn yearly income of at least $115,000 & owe at least $3,500 in state income taxes (receive W-2 wages from a for-profit business or own a for-profit business)
  • The Special Purpose Entity (SPE) for Susquehanna Waldorf School

Central Pennsylvania Scholarship Fund (CPSF) (free) Contact: Tami Clark (Executive Director) Phone: 814-942-4406 Email: CentralPAScholarshipFund@gmail.com

 

HOW TO APPLY

You will likely need the help of your CPA to complete this information for you.

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.

Once you have received your approval letter please complete the Designation Form and mail the form with your check to Susquehanna Waldorf School. Please be aware you will also need to include a copy of your approval letter from the Department of Community and Economic Development (DCED) with this form.

If you would like to take advantage of this opportunity or if you have any questions, please contact Diane Richards, diane.richards@susquehanna.org 

 

Resources

How to apply as a business (LINK to PA.gov guide)

EITC Information and Application

The Special Purpose Entity (SPE) for Susquehanna Waldorf School