FIND US ONLINE

Education Improvement Tax Credit Program

Education Improvement Tax Credit Program

Neumann Scholarship Foundation

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 on May 7, 2001, 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.

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.”

  • 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.

 The Neumann Scholarship Foundation provides financial assistance to families within the Diocese of Harrisburg who want to choose Catholic school education for their children, but do not have the financial resources to pay full tuition.

A businesses can receive 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 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.

Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes may be eligible:

  • Personal Income Tax
  • Capital Stock/Foreign Franchise Tax
  • Corporate Net Income Tax
  • Bank Shares Tax
  • Title Insurance & Trust Company Shares Tax
  • Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
  • Mutual Thrift Tax
  • Malt Beverage Tax
  • Retaliatory Fees under section 212 of the Insurance Company Law of 1921

Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system. DCED will no longer require applicants to mail the signed signature page.

The business application guide explains the process of applying. 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 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 18/19 to renew their 2-year commitment.

May 15 – Businesses who are in the middle of their 2-year commitment.

July 2 – All other businesses businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment.

Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc., can now apply the same day as C-Corporations. Applications must be submitted electronically using DCED’s Single Application for Assistance.  View the business application guidelines.

An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter. 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, except for an approved election by a pass-through entity to apply any unused tax credits to the tax liability of the owners in the taxable year immediately following the year in which the contribution is made.

Print Friendly, PDF & Email