What is the Educational Improvement Tax Credit?

Tuition assistance makes an education at Saint Aloysius School possible for many students who many not otherwise be able to afford a Catholic education.  The Educational Improvement Tax Credit (EITC) allows business to receive a tax credit for up to 90% of their contribution to Saint Aloysius School.  For example, if you pay $10,000 in taxes, you can donate $10,000 for tuition assistance and receive a $9,000 tax credit.  This means you have given $10,000 and it has only cost your company $1,000.

 

Uses

 

Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.

 

Funding

 

Tax credits equal to 75 percent of its contribution up to a maximum of $750,000 per taxable year can be increased to 90 percent of the contribution, if the business agrees to provide same amount for two consecutive tax years.

 

Eligibility

 

Businesses authorized to do business in Pennsylvania who are 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

• Personal Income Tax of S corporation shareholders or Partnership partners