Russell Byers Charter School: Education Improvement Tax Credit (EITC)

Education Improvement Tax Credit (EITC)

The EITC program enables Pennsylvanian businesses to directly invest in the education of our youth through scholarships and supporting innovative educational practices.

What is EITC?
Enacted by the Pennsylvania Legislature in 2001, EITC provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization. The tax credit increases to 90% if the company commits to making the same donations for two consecutive years. A business paying taxes in Pennsylvania can receive up to $400,000 in 2012-2013 and up to $750,000 in 2013-2014 in tax credits annually.

Administered by the PA Department of Community and Economic Development (DCED), the EITC program supports 1) Scholarship Organizations (SO) that award scholarships to children across PA to assist them in attending the schools of their choice; 2) Educational Improvement Organizations (EIO) that fund innovative projects in public schools.

The Byerschool Foundation is an eligible Scholarship Organization and Educational Improvement Organization. Money to its scholarship organization goes to support charter school students who continue on to independent schools and whose families' taxable household income is less than $60,000. Money to its educational improvement organization goes to support the Russell Byers Charter School innovative academic model, Expeditionary Learning.

Get Involved:
Business taxpayers must submit a one-page application for the Education Improvement Tax Credit at the beginning of the Commonwealth's fiscal year (July 1). Tax credits are approved on a first-come-first-served basis. Here is what to do:

Step 1: Determine your eligibility.

Step 2: Fill out and sign page 7 and/or page 9 of the Tax Credit application and provide it to us at the following address before June 28, 2013.

Emily Coffin
Byerschool Foundation
1926 Arch Street, 3F
Philadelphia, PA 19103
Fax: 215-772-3045

Step 3: The Byerschool Foundation will make sure that your application is delivered to the Dept. of Community and Economic Development on July 1, 2013. Credits are issued on a first-come-first-serve basis and are usually allocated on the first day.

Step 4: The PA Department of Community and Economic Development will advise you if your application for the EITC program is approved.

Are you eligible?

If you're interested in EITC, please contact your tax accountant with following information. Businesses are eligible if they are 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
Mutual Thrift Institution Tax
Personal Income Tax of S corporation shareholders or Partnership partners.

Why tax credits?

Tax credits are more attractive than a standard charitable donation. While deductions reduce your amount of taxable income, tax credits reduce your actual tax bill, dollar-for-dollar. Tax credits are utilized AFTER your tax liability is established.

Where to Apply:

The application process is extremely simple and just requires eligible businesses to fill out a one-page application and submit it to the DCED. Applications should be submitted to the DCED Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120: (717)-787-7120 or RA-EITC@pa.gov. Applications are approved on a first-come-first-served basis by date received.

For further details on the corporate tax credit program:

Contact the PA EITC office at (717) 787.7120 or go to the PA EITC website.
Contact the REACH Foundation at (717) 238.1878 or go to http://www.paeitc.com.
Contact the Byerschool Foundation at (215) 772.3053.

We proudly recognize our following EITC Corporate Donors:

AAMCO Transmissions	Altus Partners, Inc.	Aqua America, Inc.	Beneficial Bank

BNY Mellon	CSS Industries, Inc.	Pardee Resources Co.	PNC Community Partners, Inc.

Sampson Morris Group	Sunoco Logistics	Unisys	Verizon

Wawa, Inc.	Waste Management	Bayada Home Health Care	FIS Group

F.A. Davis Company	Susquehanna International Group, LLP	Newman & Company, Inc	Philadelphia Contributionship

Republic Bank	Wilkie Lexus