Educational Improvement Tax Credit
A Pennsylvania tax credit allows businesses to multiply their donation 10 times, and make 10 times the difference in the life of a local student by sending your state tax to Pearl S. Buck International instead of to the state of Pennsylvania. Apply here today!
How does it work?
The Educational Improvement Tax Credit (EITC) can be for up to 75% of corporate taxes owed. However, if a business makes a two-year commitment at the same funding level, the credit is 90% of taxes owed.
For example, every year ABC Corporation donates $1,000 to Pearl S. Buck International. They commit to donating $20,000 for two years under the EITC program. The net cost after the tax credit is $2,000 ($1,000 for each year). The business has the same out of pocket expense but they have provided Pearl S. Buck International with an $18,000 additional benefit. In the end, Pearl S. Buck International will receive the tax money that would have gone to the state.
Donation to Pearl S. Buck over 2 years: $20,000
Tax credit over 2 years: 18,000
Net cost to corporation: 2,000
(Note: In some tax situations, the business will have no out of pocket costs.)
What does the business need to do?
The business needs to complete a one-page application online and submit it to the Department of Community and Economic Development (DCED), who is administering the program and DCED will notify the business if the credit has been approved.
When does the business need to do this?
On JULY 1 of each year. The funds are allocated on July 1 by a lottery system and more businesses apply than there are funds available. The business should fill out the form online ahead of time and save it, to allow for any questions that might arise.
What happens after DCED approves the credit?
The business needs to make the contribution within 60 days of approval. Pearl S. Buck International then fills out an acknowledgement form that businesses are required to forward to DCED.
I would like to use my PA state tax to impact a Local student. What do I do next?
Contact Jill Reeder, chief financial and operations officer at Pearl S. Buck International: 215-249-0100 x166 or email@example.com, or visit the EITC website.
How will Pearl S. Buck International use the money?
This program will provide local schools with tours of the Pearl S. Buck House, teacher resources, and classroom learning opportunities.
The School Tours Program at the Pearl S. Buck House enables Pearl S. Buck International to assist all forms of educational institutions in Bucks and Montgomery County who have had to cutback or eliminate student field trips. Students will be given the opportunity to learn about Pearl S. Buck and develop a fundamental understanding of the role humanitarianism plays in today’s society.
If you would prefer to donate to Pearl S. Buck International instead of paying taxes, contact Jill Reeder at 215-249-0100 x166 or firstname.lastname@example.org.