For business owners only:
Educational Improvement Tax Credit Program
PA businesses have the power to redirect certain state taxes to scholarship organizations, providing school choice for parents while responsibly saving significant tax dollars for Pennsylvanians.
Do you currently pay any of the following Pennsylvania taxes?
? Corporate Net Income Tax
? Insurance Premiums Tax
? Capital Stock Franchise Tax
? Mutual Thrift Institutions Tax
? Bank & Trust Company Shares Tax
? Title Insurance Companies Shares Tax
? Personal income tax of S Corporation shareholders, partnership partners, and limited liability company members
When you designate your tax dollars specifically for Cornerstone Christian Preparatory Academy, they make school choice available for lower to middle income families who could not otherwise afford a private school education.
By making a two-year commitment, the business can receive a PA tax credit for 90% of the amount contributed. For a one-year commitment, the percentage is 75%. These are not deductions, but actual tax CREDITS.
A CPA who represents a company that contributes scholarships for students via EITC said this:
"The EITC has become a very interesting opportunity, especially with the extension of the program to pass-through entities. Because of the interaction between the federal and PA tax laws, if a taxpayer is subject to the Alternative Minimum Tax for Federal purposes, he/she may be actually able to MAKE money by giving it through the EITC, depending on tax brackets and types of income/deductions."
The beauty of EITC however, is that it represents a unique opportunity for a business owner to redirect their tax dollars to support school choice and school improvement. This makes charitable giving a greater reality, with minimal or no net out-of- pocket contribution. An additional significant benefit is that because the cost of private schools is generally substantially lower than public schools, participation in EITC has saved billions of dollars for PA taxpayers.
Thank you for your consideration of how your business can choose to redirect tax dollars for the benefit of local students and our communities.
Action Steps:
1. Review program details http://www.paschoolchoice.org/reach/cwp/view.asp?a=1367&q=568487
2. Sample computations for businesses. http://www.paschoolchoice.org/reach/cwp/view.asp?a=1367&q=569418
3. Forward to your accountant for review.
4. Choose to redirect your tax dollars into educating students who will make a positive difference in our world.
5. For guidelines and the simple one page application http://www.paschoolchoice.org/reach/lib/reach/Business_08_form.pdf (page 8)
6. Contact Cindi McCall at (724) 941-1233 to discuss priority handling of the application- very important since there is a limit on tax dollars allocated for this program and new school year applications are accepted beginning on July 1 of each year.
There are presently no tax credits available for eligible tax payers for the current year- but companies can now be placed on a waiting list if more credits become available. Call Cindi McCall for information on how to proceed and make sure Cornerstone Prep receives your scholarship dollars.
Info about the 2009-10 program reductions is available at:
http://www.newpa.com/find-and-apply-for-funding/funding-and-program-finder/funding-detail/index.aspx?progId=62
A step-by-step guide for accountants is available at: http://www.paschoolchoice.org/reach/cwp/view.asp?A=11&Q=571938
Maximize your impact- pass this information on to others who can also make a difference in this powerful win-win way!