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

Education Improvement Tax Credit (EITC)

Do you pay state business taxes? If you donate money to the Byerschool Foundation, you can get most of that money refunded to you if you file in time for the Commonwealth of Pennsylvania's Education Improvement Tax Credit. Essentially, you can decide who gets your tax dollars: the state government, or the Byerschool Foundation.

It's easy! 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 29, 2011.

Betsy Ramage
Byerschool Foundation
210 W. Rittenhouse Square, #405
Philadelphia, PA 19103
Fax: 215-772-3045

Step 3: The RBCS will make sure that your application is delivered to the Dept. of Community and Economic Development on July 1, 2011.

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

*(All applications received by the Byerschool Foundation on or before 5:00pm, June 29, 2011 will be hand delivered to the PA Department of Community and Economic Development on July 1, 2011. Any application received after that date will be submitted via facsimile. Please remember Tax Credits are issued on a first-come-first-served basis.)

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.

What is the EITC?

The EITC is a tax credit for businesses that make a donation to a scholarship or educational improvement organization. Scholarship organizations award scholarships to children across PA to assist them in attending the schools of their choice. Educational improvement organizations fund innovative projects in public schools. The EITC Program is administered by the PA Department of Community and Economic Development (DCED).

The Byerschool Foundation is an eligible Scholarship Organization and Educational Improvement Organization. Money to its scholarship organization goes to support Russell Byers Charter School graduates who attend local private and parochial schools and whose families' taxable household income is less than $40,000. Money to its educational improvement organization goes to support the Russell Byers Charter School innovative academic model, Expeditionary Learning Schools/Outward Bound.

Funding:

Tax credits equal to 75% of its contribution up to a maximum of $300,000 per taxable year; Can be increased to 90% of the contribution, if business agrees to provide same amount for two consecutive tax years.

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 tknorr@state.pa.us. 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:

Aqua America, Inc.	Paper Magic Group, Inc.	PNC Community Partners, Inc.	Newman & Co.	Beneficial Bank

Pardee Resources Co.	Waste Management	F.A.Davis Company	Wawa, Inc.	Wilkie Lexus

Verizon	Philadelphia Contributionship