Pennsylvania EITC
Businesses Can Direct State Taxes to Scholarships
Pennsylvania businesses that pay state taxes (see list below) can support student scholarships at Swain by participating in the Pennsylvania Educational Improvement Tax Credit (EITC) program, established by the Pennsylvania Department of Community and Economic Development
In 2001, The Swain School and The Hillside School formed a Scholarship Organization (SO) as a collaborative venture to solicit and receive scholarship funds for students at both schools. All scholarship donations received from businesses using their tax credits are shared equally between both schools.
That collaboration, the Lehigh Valley Independent School Scholarship Program (LVISSP), has distributed over $1 million to qualified students over the nine years since EITC program began.
The EITC program allows businesses and corporations in the Commonwealth to substitute up to $300,000 per year of business tax, and earmark those funds for scholarships for children to attend independent schools approved by the state.
Business Taxes that qualify for EITC include:
Corporate Net Income Tax
Capital Stock and Franchise Tax
Bank and Trust Company Shares Tax
Title Insurance Companies Sales Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax
Personal Income Tax (Sub S Corporations and other “pass-through” entities)
Click here for a copy of the EITC information packet, from the Pennsylvania Department of Community and Economic Development (the one-page application form is on page 10). To participate for 2010-2011, you must complete and fax your application to 717-772-3581 starting on June 30, 2010.
For more information on how your business might participate in this program, please contact Judy Skinner, Director of Advancement, at 610-433-4542, ext. 118 or at development@swain.org.
