What is the Educational Improvement Tax Credit (EITC) program?
Offered by the Pennsylvania Department of Community and Economic Development (DCED), this program allows businesses to receive significant tax credits when they contribute to qualified educational improvement organizations such as The M.S. Hershey Foundation. Funding from the EITC program allows the Foundation to bring increased educational opportunities to thousands of children every year, thereby continuing its mission to provide educational and cultural enrichment to the residents and visitors of Hershey.
This program only funds “innovative educational programs” that are pre-approved by the DCED. It does not fund general operating expenses.
The EITC program amends the Pennsylvania Public School Code to authorize tax credits for businesses that make contributions to educational improvement organizations (EIO).
What is an educational improvement organization (EIO)?
EIOs are non-profit organizations that have been approved by DCED for participation in the EITC program. To become an EIO, the non-profit must apply to the DCED to show how their programs improve the educational opportunities for children. The M.S. Hershey Foundation has been designated an eligible EIO.
What businesses are eligible?
Businesses that pay the following Pennsylvania taxes:
• Corporate Net Income Tax
• Capital Stock Franchise Tax
• Bank and Trust Company Shares Tax
• Title Insurance Companies Shares Tax
• Insurance Premiums Tax
• Mutual Thrift Institutions Tax
Why should your business give?
Your business will receive a 90% tax credit if you sign up for two years in the program and a 75% tax credit if you sign up for one year. Eligible businesses can receive up to $200,000 in tax credits per taxable year. Plus, you are helping support The M.S. Hershey Foundation’s educational programs at Hershey Gardens, Hershey Museum, Hershey Theatre, and Hershey Community Archives.
When does the tax credit program begin, and how much is available?
The program year is July 1 through June 30. The filing date is July 1 for first year applications and May 15 for year two (renewal) applications. Applications for tax credits are processed until the credits are exhausted; therefore it is important for your business to submit your application on July 1. In 2007, $22.3 million was available for educational improvement organizations.
How do businesses apply for the tax credit?
The process is simple. Businesses must submit a brief application to the DCED stating what amount they plan to contribute. The DCED will notify businesses if their
applications are approved. After receiving approval, businesses have 60 days to make the contribution to an approved Educational Improvement Organization. The business must also send the DCED a copy of the confirmation of contribution from the EIO.
Let’s get started!
Determine the amount of state corporate taxes that your company pays.
Applications and guidelines are available on the DCED website:
Complete the application and fax it to the EITC offices at 717-772-3581
or deliver it to the EITC offices:
Department of Community and Economic Development
400 North Street, 4th Floor
Commonwealth Keystone Building
Harrisburg, PA 17120-0225
The EITC Offices must receive the application on July 1, not before.
For more information:
The M.S. Hershey Foundation
63 West Chocolate Ave., Hershey, PA 17033
Department of Community & Economic Development
The official registration and financial information of The M.S. Hershey Foundation may be obtained from the Pennsylvania Department of State by calling toll free, within Pennsylvania, 1-800-732-0999. Registration does not imply endorsement.