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EITC Article in VocalPoint Chamber Newsletter April 2015
- 1. Recent Chamber Events Monthly Newsletter 321 MAIN STREET IRWIN, PA 15642 PHONE: 724-863-0888 FAX: 724-863-5133 WEB: WWW.NORWINCHAMBER.COM EMAIL: INFO@NORWINCHAMBER.COM APRIL 2015 NORWINCHAMBEROFCOMMERCE Cash Mob at Panera Bread Joint Networking Luncheon with the Norwin, Monroeville, Plum, Penn Hills and Mon Yough Chambers of Commerce Block Party Mixer with Albanese Sinchar Smith & Co., Rupp & Fiore Insurance Management, Revive Chiropractic & Rehabilitation and Whitney Construction Cocktails & Conversations at Rivertowne Brewery with the Plum Chamber of Commerce
- 2. Member Spotlight4 In 2001, Pennsylvania made history by becoming one of the first states in the nation to create an Educational Improvement Tax Credit program. The EITC program can provide alternative revenue for innovative educational programs, while also helping participating businesses to receive substantial state tax credits. A business may receive a tax credit equal to 75 percent of its contribution to an Educational Improvement Organization or Scholarship Organization that is included on the current list published by the Pennsylvania Department of Community and Economic Development, up to a maximum of $750,000 per taxable year. The tax credit may be increased to 90 percent of the contribution made, up to a maximum of $750,000 per taxable year, if the business agrees to provide the same amount of contribution for two consecutive years. How It Has Worked at Norwin School District For example, First National Bank donated $5,000 in 2013 and $30,000 in 2014 through the EITC program to support Science, Technology, Engineering, and Math educational programs at Norwin School District. First National Banks generosity is truly expanding educational opportunities for Norwin School District students and is gratefully acknowledged. In addition, the $35,000 in total donations only cost the corporation a fraction of that amount, because the majority of the donation was credited back to them on their state taxes. The remainder that isnt credited can sometimes be deducted as a charitable donation from a business federal taxes (see your accountant for details). For participating businesses, the EITC program can be a true win-win proposition. If your business is already involved in the EITC program and you would like to consider adding another organization, the program allows you add new recipients at any time. Competitive Program The program has always been extremely competitive due to a limited statewide pool of available tax credits. Unfortunately, beginning in 2013, the program became even more difficult for new businesses to enter due to a change in state law that gave existing participants priority access to the tax credits. This resulted in new businesses being frozen out of the program. However, even if you are a business owner who is not yet in the program, it can be beneficial to become aware of EITC for possible involvement in the future. The program can be changed in any given year by the Pennsylvania General Assembly, which might create an opening for a new business to consider. Eligibility To be eligible, a business must be subject to one or more of the following 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 Institution Tax, Insurance Company Law of 1921, or Personal Income Tax of S corporation shareholders or Partnership partners. To learn more about Pennsylvanias Education Improvement Tax Credit program, and to see a list of participating organizations, visit www. newpa.com/eitc. Public school foundations, such as the Norwin School District Community Foundation, are listed on the Educational Improvement Organizations link of that Web page. In addition, talk to your accountant, controller, or tax advisor to see what options may be available to your business. The Norwin School District Community Foundation is a registered 501(c)(3) nonprofit organization affiliated with Norwin School District. Donations to the Foundation are tax deductible. The Foundations mission is to develop programs and activities benefiting Norwin School District students, to develop and increase community philanthropy, to develop and administer scholarship funds for graduates of Norwin School District, and to support educational programs. Learn more at www.norwinsd.org/foundation. Mr. Jonathan D. Szish, Executive Director, can be contacted at jszish@norwinsd.org or 724-861-3000 ext. 1150. Norwin School District Innovative State Tax Credit Program Expands Opportunities for Students