Thaddeus Stevens College of Technology

Educational Improvement Tax Credit Program for Businesses(EITC)

Why not keep your business taxes locally and support something that you think is important to improving our state and the economy. The EITC Business Tax Credit Program allows businesses to pay a part of their business taxes directly to an approved Educational Improvement Organization.

Thaddeus Stevens College of Technology’s Dual Enrollment Program for high school students is an approved EITC Program and could use your support. And our student success is rate in this program outstanding!

In partnership with area high schools, Thaddeus Stevens College of Technology offers an approved educational improvement program for students who desire to earn their high school degree while concurrently earning credits toward their first year in college. Such a program inspires young people to continue their education and/or enter the workforce with advanced technical skills. Every dollar you invest provides more opportunities for high school students who otherwise couldn’t afford the opportunity.

The Educational Improvement Tax Credit (EITC) Program is administered by the Department of Community & Economic Development (DCED) under Act 48. The program awards tax credits to businesses that make contributions to scholarship organizations and/or educational improvement organizations that are on a list approved and published by DCED. Thaddeus Stevens College of Technology, through the Thaddeus Stevens Foundation, is approved to receive your EITC contribution.

Here’s how it works!
Who’s eligible?
Businesses authorized to conduct 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
* Personal Income Tax of S-Corp Shareholders
* Personal Income Tax of Partnership Partners

Amount of Credits
A business will be approved for a tax credit equal to 75% of its contribution up to $300,000 per taxable year. However, if the business pledges the same amount of contribution to the organization for two (2) consecutive years, the tax credit is increased to 90% of the contribution, up to a maximum of $300,000 per taxable year.

For Example: S CORPORATION/LLC PARTICIPATION
Sample Calculation for Pass-Through Entities Using the EITC Program

	One-Year 75% EITC	Two-year 90% EITC
Contribution	$25,000	$25,000
Federal Tax Deduction	($8,750)	($8,750)
PA Capital Stock Tax Reduction (75% & 90% of Contribution)	($18,750)	($22,500)
PA Tax Reduction	($768)	($768)
Increase in Federal Tax due to decrease in PA Capital Stock Tax Deductions	($6,563)	($7,875)
Net Cash required to contribute $25,000 to Stevens	$3,295	$857

To support the College through EITC Tax Credits, a business must qualify through the PA Department of Community and Economic Development (DCED) for the EITC Tax Credit program. Instructions:
1- Your application can be downloaded at www.newPa.com/eitc .
2- Once this page has appeared on your screen go three-quarters of the way down the page to the Title : WHERE TO APPLY
3- At the end of that paragraph is the phrase EITC Business Guide . Put your mouse on that and enter.
4- A copy of the Business Guidelines and Application Book will appear. PLEASE GO TO PAGE 9 and complete the simple one page Appendix 1- EIO only and submit to:

Department of Community and Economic Development
The Educational Improvement Tax Credit Program
Center for Business Financing - Tax Credit Division
400 North Street, 4th Floor
Common wealth Keystone Building
Harrisburg, PA 17120-0225
Telephone: (717) 787-7120
Fax: (717) 772-3581
E-mail: tknorr@state.pa.us

MAKE a GIFT
(choose designation on 2nd page of registration)

Questions?
Contact Allen Tate, Director of Development at 391-7285 or tate@stevenscollege.edu