The Educational Improvement Tax Credit (EITC) program allows companies to empower children in educational settings to reach their potential. Tax credits may be applied against your Pennsylvania business tax liability for the tax year in which the contribution was made. There are federal tax benefits as well.
How are the funds used?
North Light Community Center is an approved Education Improvement Organization (EIO) by the Department of Community and Economic Development (DCED) for two of its programs. The funds contributed by businesses like yours support North Light’s work with teens and tweens through Summer Career Exploration Program (SCEP)/ WorkReady and FUSE programs which prepare youth for the workforce and promotes higher education to reduce the number of high school drop outs.
SCEP/WorkReady arranges for paid summer internships at area businesses in line with the teen’s interests and FUSE provides unique learning opportunities during the school year, such as video production and machine learning.
What is the impact of your investment?
SCEP/WorkReady has a proven track record. A long-term outreach survey of more than 300 SCEP participants showed that:
- 99% graduated from high school
- 95% of the high school graduates attended or graduated from college
- 91% are currently or have recently worked part- or full-time
- 91% said SCEP/WorkReady influenced or aided them going to college
- 85% of participants stated that SCEP helped them identify or rule out various career
How does EITC work?
Businesses that commit to giving for 2 years are eligible to receive 90% of their contribution in tax credits. Businesses that commit to 1 year are eligible to receive 75% of their contribution in tax credits. Tax credits are awarded up to a maximum of $750,000 per year.
Who can participate?
Your business qualifies if they pay one or more of these 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
How do I apply?
- Confirm with your accountant or CFO to determine your business’ eligibility.
- Visit the PA Dept. of Commerce and click on Business Guidelines for more information.
- Submit an online application.
- Once approved, your business has 60 days to submit your contribution designating North Light Community Center (NLCC) as your
- Within 90 days of approval, you must submit proof of contribution to DCED (copy of receipt letter from NLCC).