The History
On May 7, 2001, by an overwhelming bipartisan majority Pennsylvania made history by becoming the first state to pass an education tax credit program aimed at corporations. Advocated by former Governor Tom Ridge, the Educational Improvement Tax Credit Program (EITC) provides companies with a tax credit for donating to a nonprofit scholarship organization or an educational improvement organization.
Upon the passing of the EITC program the Diocese of Harrisburg established the Neumann Scholarship Foundation (NSF) in 2001 to administer funds generated by the tax credit program for the sole use of tuition assistance.
Why is this Important to the Catholic Church?
The EITC provides tax incentives for community businesses to contribute to scholarship organizations, allowing their state tax monies to remain in their communities. In essence, it gives parents the economic means to choose the learning environment they believe best meets the needs of their children, regardless of their family income.
Support for school choice can be found in The Catechism of the Catholic Church, which says, “As those first responsible for the education of their children, parents have the right to choose a school for them which corresponds to their own convictions. This right is fundamental. As far as possible parents have the duty of choosing schools that will best help them in their task as Christian educators. Public authorities have the duty of guaranteeing this parental right and of ensuring the concrete conditions for its exercise.”
Important Facts about the Program:
100 % of the funds are distributed to our diocesan school families as tuition assistance.
Businesses are permitted to restrict tax credit monies to the Diocese of Harrisburg school of their choice.
The Neumann Scholarship Foundation (NSF) accepts charitable contributions to help defray the cost of Catholic school tuition to families in need within the diocese.
How does this Program Benefit the Students and their Families?
Families may apply for scholarships, which are awarded according to the scholarship organization’s criteria. Minimally, scholarships must go to students with household incomes of $50,000 or less with an additional $10,000 allowance for the student and each other dependent living in the same household.
How does Enrolling in the EITC Program Benefit my Company?
Businesses can receive up to $200,000 in eligible tax credits annually.
A percentage of the contribution can also be claimed as a charitable contribution on a business federal tax return.
Businesses making a one-year commitment receive a 75% state tax credit of the amount of their contribution (rule applies to grades K-12).
Businesses making a two-year commitment receive a 90% state tax credit of the amount of their contribution (rule applies to grades K-12).
Business making a commitment to Pre-K receive 90% annually.
Does your Business Pay one or more PA Tax Listed Below?
If your business pays one or more of the following taxes then you may be eligible to participate in the EITC program. 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
- Personal Income Tax Liability Tax
How Easy is Enrollment?
Step 1
Complete Department of Community and Economic Development’s (DCED) simple one page enrollment application.
Step 2
Submit your completed application to the Diocese of Harrisburg, Office of Development.
We will hand carry your application to DCED the very first day they are accepting applications for second year renewal or new submission.
Step 3
DCED responds with an acceptance letter to the business and gives 60 days to submit their contribution. When restricting funds, a detailed letter listing the beneficiary and percentage assigned to each must be included.
Step 4
Neumann Scholarship Foundation will reply to the business a Receipt of Contribution.
The receipt states the date of the check, name of the business, amount of the contribution and the date the contribution was received by NSF.
Step 5
Upon receiving the Receipt of Contribution from NSF, the business will have 90 days, beginning from the date of the submitted check, to submit a copy of the Receipt of Contribution to DCED.
Facts to Know:
Applications to DCED are processed on a first come, first credited basis.
Businesses must renew their applications annually.
Monies are released from the diocese to each school to be utilized for the next year’s scholarships.
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