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EITC for Businesses
Benefits from EITC
The Educational Improvement Tax Credit (EITC) program can benefit a business in several ways:
- Tax Benefits: Participating in the EITC program can provide businesses with significant tax benefits. By making a contribution to an approved educational organization, such as a school, a business can receive a tax credit of up to 90% of the donation amount against their Pennsylvania state tax liability.
- Public Relations: Supporting education through the EITC program can improve a business’s public image and reputation, as it demonstrates their commitment to the community and education.
- Workforce Development: A strong education system helps to develop a well-educated and skilled workforce, which can benefit businesses by providing them with a pool of qualified candidates to hire from.
- Philanthropic Opportunities: Participating in the EITC program can offer businesses a way to support a cause they care about, while also providing tangible benefits.
Overall, the EITC program can offer businesses a way to support education in their community, while also receiving significant tax benefits and improving their public image. By participating in the program, businesses can demonstrate their commitment to education and the community, while also helping to improve the quality of education for students in their area.
How to participate:
Support your local school.
Overall, donating Pennsylvania state income taxes to a school through the Educational Improvement Tax Credit program using an established Special Purpose Entity is a straightforward process that benefits both the business and the school. The school receives much-needed funding, and the business receives a tax credit for their donation.
- Determine eligibility: Does your business or business owners pay Pennsylvania State Income Taxes? If YES, you are likely eligible to participate! All the business or business owners need to do is to determine an estimate of their annual state income taxes. Call with questions.
- Request Joinder: Ask FundEDU LLC to send you an electronically-secured enrollment form for a Special Purpose Entity - thus holding a place in the queue to receive an EITC tax credit.
- Apply: Fill out the one-page joinder as shown.
- Approval: If approved for a credit, around Halloween, you will receive an award letter from one of our charity partners.
- Make the donation: The business must make the donation to the given SPE within the deadline specified on the contribution request that was included with your state tax credit award letter.
- Claim the tax credit: In February of the following year, you will receive a K-1 packet to file with your state income taxes to receive your 90% tax credit.
