Tax Credits Available

Support the North Penn United Way by donating your corporate tax credit dollars!

Tax Credits Available

Reduce your business tax liability and help the United Way invest in education

The PA Educational Improvement Tax Credit program (EITC) offers tax credits to eligible businesses contributing to an Educational Improvement Organization and/or a Pre-Kindergarten Scholarship Organization through the PA Department of Community and Economic Development (DCED).

The North Penn United Way is approved by the DCED as both an Educational Improvement organization and a Pre-Kindergarten Scholarship organization.


Choose how your state tax dollars are spent

Invest tax dollars in our community and future workforce
·    Ensure that young children throughout the North Penn and Souderton Area School Districts are in quality early education programs
·    Take advantage of this tax credit opportunity
·    Support the North Penn United Way
 

Educational Improvement Opportunities Program (EIO)
Businesses who take advantage of the tax credit program by donating dollars to the North Penn United Way’s EIO program
o    offers support for innovative educational programs that enhance the school day curriculum.
o    allows school age children the opportunity to participate in these enrichment programs outside of the regular school day.

Pre-K Scholarship Program
Businesses who take advantage of the tax credit program by donating dollars to the North Penn United Way’s Pre-K Scholarship program
o    allows low income children the opportunity to attend approved preschool programs at little or no cost to their families.
o    supports these children who would otherwise not attend a preschool program and would typically enter school with fewer learning  experiences than their peers.
 

What You Need to Know

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

Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and are not refundable or transferable.
 

Funding

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

For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.

Eligibility

Eligible businesses are those 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
 

How to Apply: Step-by-Step Process

1. Complete the one-page, online application (LINK)
Need help? Desktop Guide to Completing your Application Online (LINK)

2. State the amount of tax credit contribution your business will make to the North Penn United Way in the application

3. Once approved, your business will receive written notification from DCED

4. Send your contribution to Linda Abram, Director of Community Impact, within 60 days

5. North Penn United Way will send written acknowledgement of your contribution to your business within 30 days

6. Your business will then forward a copy of the acknowledgement to DCED within 90 days of original notification

7. File your tax return as usual and claim the tax credit for your contribution

Timeline

The Office of Education has the following timeline, but we encourage you to submit an application anytime in the event dollars are still available.

  • 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.


May 15 - Deadline to apply for 2nd year of two-year commitment and to apply for renewal of multi-year commitments for EIO (Educational Improvement Organizations), SO (Scholarship Organizations) and OSO (Opportunity Scholarship Organizations)

July 1 – if you are applying for new or have been out of the program for a while EIO, SO and OSO

July 1 – for PreK (Pre-Kindergarten Scholarship Organizations)

The EIO Tax Credit budget remains extremely competitive and the
popularity of the Pre-K Tax Credit program has increased.

Making timely submissions of the applications is absolutely critical.

For more information about how the North Penn United Way is using tax credits to support student success in North Penn and Indian Valley, contact Linda Abram, Director of Community Impact, at l.abram@npuw.org or 215-855-3002.