Pennsylvania Educational Improvement Tax Credit (EITC)

The Challenge Program, Inc. (TCP) qualifies for Pennsylvania’s Educational Improvement Tax Credit (EITC).

This is a cash credit that offsets your Pennsylvania tax liability including the following taxes:

  • Corporate net income tax
  • Capital stock/franchise tax
  • Personal income tax of S Corporation shareholders, or partners in a general or limited partnership
  • Bank and trust company shares tax

You also will receive a Federal charitable deduction for this contribution.

What this means to you—your company’s contribution to TCP could cost NOTHING if you make a 2-year commitment and is only 9 cents on the dollar for a one year commitment.  (Click Samples Button Below).

Contribute to TCP—Redirect Your Tax Dollars

Yes! Your contribution to help TCP accomplish its mission of motivating students could virtually cost you zero dollars.

The Credit

The PA Department of Community and Economic Development (DCED) allows tax credits for organizations conducting business in the state when they make donations to an eligible Educational Improvement Organization.

Your tax dollars can be applied directly to support TCP to make a difference in the lives of our students by providing them with incentives for academic improvement, attendance, community service, STEM courses and academic excellence.

How much of my tax liability may I donate to TCP through EITC?

Businesses can receive a tax credit equal to 75% of a contribution up to $750,000 per taxable year. The tax credit increases to 90% if the business agrees to provide the same amount for two consecutive years. A charitable contribution deduction may be available to your business for the remaining contribution amount not eligible for a tax credit—making the total cost to you very little.

Where do I get an application?

The online application for EITC is available through the Department of Community and Economic Development’s website at www.ne wpa.com . Select “EITC Business Guidelines” for further information.

Can TCP help me apply?

We will happily submit your online application for you. We can work with your accountant, complete the application for your signature, and electronically file your application for you.

When do I submit the application?

Because EITC dollars are available on a first-come, first-served basis, it is important that your application is ready to be submitted by The Challenge Program, Inc. by May 15th, 2015. First time applications will be submitted on July 1, 2015

Who should I contact at TCP to learn more or to discuss my interest in making an EITC gift?

Karen Robatin, Finance Director, would be happy to speak with you anytime you wish to discuss EITC giving. Karen may be reached at 814-533-7401 ext. 102.

Please check the EITC website for more information: www.ne wpa.com.

Always consult your accountant when making decisions with tax implications.

S-Corp and C-Corp Samples