EITC
THE EDUCATIONAL IMPROVEMENT TAX CREDIT PROGRAM (EITC)
THANK YOU TO THE FOLLOWING ORGANIZATIONS FOR YOUR SUPPORT:
Univest Bank- $10,000
Fulton Bank - $7,500
Capital Blue Cross - $15,000
Fidelity Bank - $10,000
Weis Markets, Inc. - $1,500
The Foundation for Easton Schools is designated as an Educational Improvement Organization by the Department of Community and Economic Development (DCED) under the Educational Improvement Tax Credit (EITC) program. The Foundation satisfies all eligibility criteria including a designation as a non-profit entity under the federal tax code section 501(c)(3), and our organization is listed among the educational improvement organizations to which businesses may make contributions and be considered for Educational Improvement Tax Credits from the Commonwealth of Pennsylvania. This list can be found on the DCED: Educational Improvement Organizations website.
The Foundation for Easton Schools currently has two essential programs in need of funding that have been determined by the PA Department of Community and Economic Development to constitute an “innovative educational” program, as defined by law. The Full STEAM Ahead Summer Learning Day Camp is designed to accelerate literacy skills in children in Kindergarten through Grade 5. You can learn more about this program by viewing the Full STEAM Ahead flyer (PDF). The Dual Enrollment Program supports low-income Easton Area High School students so that they can participate in instruction or programming that provides credits/advanced placement at Northampton Community College. Corporations may now make a charitable contribution to The Foundation for Easton Schools by directing tax dollars directly to these programs in lieu of a portion of their State income tax.
What are Educational Improvement Tax Credits?
A tax credit for business that make donations to an educational improvement organization to supplement funding of enhanced programs the school district budget can no longer support.
What businesses qualify?
Businesses authorized to do business in PA who are subject to one or more of the following taxes: Corporate Net Income; Capital Stock Franchise Tax, Bank and Trust Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; or Mutual Thrift Institution Tax and the personal income tax of principals of a “pass through entity.” Businesses must apply to DCED for the tax credit.
How much of a tax credit do businesses receive?
An approved business may receive a tax credit equal to 75% of its contribution to an Educational Improvement Organization that is included on the current list published by the Department, up to a maximum of $750,000 per taxable year. However, if a company provides a two-year commitment of equal funding, the credit becomes 90%.
What organizations can businesses contribute to in order to receive the credit?
Organizations eligible to receive EITC contributions must be a recognized 501(c)(3) and use 80% of their annual receipts on approved programs. Additionally, they must register with the Department of Community and Economics Development (DCED) and be listed and placed on the list of eligible organizations.
How do you know which business organizations are listed?
They should check the DCED Web Site. Business participants can be searched by county.
Can Businesses contribute to more than one organization?
Yes. Businesses can donate to as many eligible organizations as they choose.
For more information on Full STEAM Ahead Or Dual Enrollment, please contact the Foundation at ffedirector@eastonsd.org or (610) 250-2400 ext. 35079.