The Lower Dauphin Falcon Foundation is approved and on the list!
What is EITC?
Enacted by the Pennsylvania Legislature in 2001, the Educational Improvement Tax Credit (EITC) program authorizes tax credits for businesses that make contributions to educational improvement or scholarship organizations. The EITC is administered by Pennsylvania’s Department of Community and Economic Development (DCED).
This program is unique to Pennsylvania in that it allows businesses to make charitable contributions based on the amount of Pennsylvania state taxes they pay. A business may receive a tax credit equal to 75% of its contribution to an eligible Scholarship Organization and/or to an Educational Improvement Organization, such as education foundations, up to a maximum of $400,000 per taxable year. Tax credits may be increased to 90% of the contribution made, up to a maximum of $400,000 per taxable year, if the business agrees to provide the same amount of contribution to an organization for two consecutive years.
Why should a business participate?
The EITC program was designed to encourage Pennsylvania organizations and businesses to partner in support of local communities. Contributions made under the EITC program help community organizations continue the valuable work they do.
In addition to generating goodwill, participating Pennsylvania businesses can reduce their tax liability by supporting organizations like foundations. Specifically, businesses are able to reduce their actual tax bill—dollar for dollar—once a tax liability has been established.
Which Businesses are Eligible?
Eligible businesses are those authorized to operate in Pennsylvania and subject to one or more of the following taxes: Corporate Net Income Tax, Capital Stock Franchise Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax; Mutual Thrift Institution Tax and Personal Income Tax of S Corporation shareholders or partners in a general or limited partnership.
How to Apply
Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system. DCED will no longer require applicants to mail the signed signature page.
The Business Application Guide explains the process of applying. Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.
Thank you! EITC Grants we received in the 2022-2023 School Year
Special thanks to the following companies for this year’s support: Mid Penn Bank ($6,500), Avalon Insurance Company ($5,000) and Weis Markets ($1,500). Funds will be used to support EITC approved programs including Falcon Foundation Camp, a 3-week summer camp for Lower Dauphin middle school students. The Falcon Foundation Camp provides incoming 6th through 8th grade students with several options to expand their knowledge or skills with classes geared towards science, art, math and more during a less busy time of year. Past programs using EITC funds include “Many Drums, One Sound” at the elementary school level and an Artist-in-Residence mural project that was completed at the high school in the fall of 2022.