giving through EITC
The Educational Improvement Tax Credit Program (EITC) program of the Pennsylvania Department of Community and Economic Development (DCED) is one more way that businesses can support Natural Lands.
what is EITC?
The Commonwealth of Pennsylvania provides generous tax credits to eligible businesses that support Educational Improvement Organizations. Through Pennsylvania’s Educational Improvement Tax Credit Program (EITC), eligible businesses can fund education rather than pay a portion of its state taxes. Businesses make a gift through the EITC program to an EITC approved educational organization, such as Natural Lands. The Department of Community and Economic Development (DCED) gives the business a tax credit equal to a percentage of the contribution. DCED determines the eligibility of businesses, application procedures, and deadlines and tax credit limits.
Receive a Tax Credit
Eligible businesses can receive a tax credit equal to 75-90% of their contribution. To gain the maximum, your business must provide a written commitment to donate the same amount for two consecutive years.
Businesses eligible to participate in Pennsylvania EITC can earn tax credits for their companies while providing significant funding to Natural Lands for Powered by Nature.
Powered by Nature is designed to empower elementary and middle school students through hands on nature environmental activities. Currently the program is offered in Pottstown School District.
Companies can claim credits against the following:
Corporate Net Income Tax
Capital Stock Franchise Tax
Bank and Trust Company Shares Tax
Title Insurance Companies Shares Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax
Insurance Company Law of 1921
Personal Income Tax of S Corporation shareholders or Partnership Partners
Eligible entities include:
C Corporations
S Corporations
Limited Liability Corporations
Partnerships
Limited Liability Partnerships
Sole Proprietorships
eligibility and application
DCED determines the eligibility of businesses, scholarship organizations, and educational improvement organizations. Your company needs to complete a brief application to DCED stating the amount it plans to contribute. DCED will notify your business if its applications is approved. After receiving approval, your business has 60 days to make the contribution to Natural Lands (an approved educational improvement organization). The business must also submit a copy of the confirmation of contribution from Natural Lands to DCED.
business application timeline
Whether your business is a new or renewing applicant to the EITC program, be aware that the DCED allocates credits on a first-come, first-served basis. This is a competitive program, which means when the tax credits allocated for the year are exhausted, DCED can offer no additional credits and businesses cannot contribute through EITC during that year.
May 15 – Business applicants who have fulfilled their two-year commitment and wish to reapply to renew their two-year commitment.
May 15 – Businesses who are in the middle of their two-year commitment.
July 1 – All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted two-year commitment.
More Information
For complete details on participation in the EITC program and the approval process through the Commonwealth of Pennsylvania, please visit their website.
For more information about donating to the Natural Lands through the EITC program, please send a message to Lisa, our director of institutional giving. or call 610-353-5587 x258.