Educational Improvement Tax Credit
EITC funding enables Delaware County Historical Society (DCHS) to present educational programs free of charge to all participating students. These funds make the Education Center accessible to all students, no matter what community they live in or what school they attend. Since social studies, history and civics are not state tested areas of study these subjects have been severely scaled down in both funding and time in many of our local school districts.
It is through visiting DCHS’s Education Center that many students are introduced to the history that surrounds them and get a true understanding of our past. The Education Center provides hands-on learning experience that truly keeps history alive in our young citizens of Delaware County and keeps that spark of the past glowing in their eyes.
Evaluation of the visit, which is conducted at the end, consists primarily of a survey taken by participating teachers. Delaware County’s Education Center and guided tour is rated by its relevance to the curriculum being taught in a particular classroom, professionalism of the presenters, the usefulness/helpfulness of the school trip and the uniqueness of the program. Teachers and educators are also requested to offer suggestions and or recommendations for the future of the Education Center.
To apply go to: https://dced.pa.gov/programs/educational-improvement-tax-credit-program-eitc/
Uses
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Eligibility
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes:
· Personal Income Tax
· Capital Stock/Foreign Franchise Tax
· Corporate Net Income Tax
· Bank Shares Tax
· Title Insurance & Trust Company Shares Tax
· Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
· Mutual Thrift Tax
· Malt Beverage Tax
· Retaliatory Fees under section 212 of the Insurance Company Law of 1921
Funding
Tax credits equal to 75 percent of its contribution up to a maximum of $750,000 per taxable year. Can be increased to 90 percent of the contribution, if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.
Terms
An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter. Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and are not refundable or transferable, except for an approved election by a pass-through entity to apply any unused tax credits to the tax liability of the owners in the taxable year immediately following the year in which the contribution is made.
How to Apply
Businesses- 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.