Who may make EITC gifts?
• C-Corporations (taxed at the corporate level)
• S-Corporations
• Partnerships
• Sole Proprietors
• Limited Liability Companies (LLC’s) and Partnerships (LLP's)
Here are the business taxes you can claim credits against:
• 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
How much of a business’ tax liability can be donated to Friends Select through EITC?
Businesses can receive a tax credit equal to 75% of a contribution up to $300,000 per taxable year. The tax credit increases to 90% if the business agrees to provide the same amount for two consecutive years. A charitable contribution deduction may be available to a business for the remaining contribution amount not eligible for a tax credit – making the total for cost ZERO.
Where do I get an application?
The simple, one page application form is available through the Department of Community and Economic Development at (717) 787-7120 or at www.newpa.com. Select “EITC Business Guidelines” for further information and the application form. The process is very simple:
1. Business completes one page application and submits it to the Department of Community and Economic Development (DCED).
2. Business receives a letter of approval from DCED.
3. Business submits monetary contribution within 60 days to Friends Select School.
4. Friends Select provides business with acknowledgment of contribution.
5. Business submits acknowledgment to DCED.
6. DCED communicates with PA Dept. of Revenue and applicable tax credit is applied to business tax account.
7. Credit is taken as a payment of taxes on businesses’ annual tax return filing.
When do I submit the application?
For next year, the application should be submitted on July 1, 2012, because the money is disbursed on a first-come-first-served basis. Friends Select School is happy to forward your application to the state.
Can Friends Select help me apply?
Yes. We will work with you – even complete the application for your signature, and deliver it for you. We want to make the process as simple as possible.
Who should I contact at Friends Select to learn more or to discuss my interest in making an EITC gift?
or
Christine Jefferson