Educational Improvement Tax Credit

A PA Department of Community and Economic Development (DCED) program allows your business to EARN TAX CREDIT by REDIRECTING its tax dollars into the Penngift/CCA scholarship fund. Your participation in the program allows more children the opportunity to become Christian leaders.

Enacted in 2001, the Pennsylvania Educational Improvement Tax Credit (EITC) program amended the public school code. Act 4 authorized the award of tax credits to businesses that make contributions of up to $750,000 to scholarship organizations (Penngift). These scholarship organizations then designate funds as tuition assistance to qualified recipient schools like Central Christian Academy. In fact, business donations to the EITC program have created thousands of scholarship dollars for Central Christian Academy students.

If this is your first time, you will need to apply by July 1. If you are an approved donor from previous year, apply between May 15th and June 30th.

Applications are approved on a first-come basis by date received, and approved until available tax credits are exhausted. Funds for first-time applicants are usually exhausted 48-72 hours after midnight, July 1.

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

If you do business in Pennsylvania and pay any of the following corporate taxes, the answer is YES!

• Corporate Net Income Tax

• Capital Stock Franchise Tax

• Bank and Trust Company Shares Tax

• Title Insurance Company Shares Tax

• Insurance Premiums Tax

• Mutual Thrift Institutions Tax

• Surplus Lines Tax

Subchapter S Corps, Limited Partnerships, and Other Pass-through Organizations (filing PA Forms 25S or 65) are also qualifiying businesses.

Read these business guidelines to verify that your business qualifies.