How PA Businesses Can Receive a Tax Credit and Support Settlement at the Same Time
PA’s Educational Improvement Tax Credit Program (EITC)
In 2008-2009, EITC will provide $8 million in tax credits (on a first-come, first-serve basis) to eligible businesses that contribute to a qualified pre-kindergarten scholarship organization like Settlement’s Kaleidoscope Preschool Arts Enrichment Program, a nationally recognized, arts-based program that prepares low-income, inner-city children for academic success.
What Businesses Are Eligible?
All businesses authorized to do business in the Commonwealth of PA that are subject to one or more of the following taxes:
• Corporate Net Income Tax
• Capital Stock 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
What Types of Businesses are Eligible?
• Corporations (including S Corps) and PA LLCs
• Small law firms (less than 35 shareholders) are, or may be, S Corps. and therefore may be eligible.
• Business entities that pay their State business taxes under the personal income tax on PA business income.
Businesses That Are Not Eligible: Partnerships and LLPs.
What Businesses Have Contributed to Settlement through EITC?
• Aqua Pennsylvania
• CorseMax
• Delaware Investments
• Harmelin Media
• Keystone Development Services
• Pitcairn Trust Company
• PNC Financial Services Group
• SEI Investments
• Sovereign Bank
How Much of a Tax Credit Can a Business Receive?
A business may receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed, up to a maximum credit of $150,000 annually.
How to Apply
Just complete a one-page application (Appendix 1-PKSO) and mail it to DCED Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120. Once you receive written approval from DCED, send your contribution within 60 days to Settlement Music School, P.O. Box 63966, Philadelphia, PA 19147. We will mail you an acknowledgement letter and an appropriate receipt that you can send to DCED.
Additional Questions?
Please review the EITC business guidelines or contact Andrew Brenner at Settlement Music School (215-320-2674;
) for more information or if you need assistance.