EITC Program for Businesses and Individuals

 

If you have a business and would like to support Servant Stage, you may want to consider the EITC (Educational Improvement Tax Credit) program detailed below. By participating, businesses can reduce their state tax liability while supporting Servant Stage’s educational programs which directly impact thousands of students in Central Pennsylvania.

Note: if you don’t have a business but would still like to participate in the EITC program that costs you a dime to give a dollar, learn more about our EITC program for individuals here.

What is the EITC Program?

Pennsylvania allows businesses to obtain a state tax credit (not a deduction) equal to up to 90% of their Pennsylvania state tax liability for eligible contributions. These contributions must be made either to schools that provide tuition assistance to students from low-income households or to approved Educational Improvement Organizations (“EIOs”). The program is part of the Educational Improvement Tax Credit (“EITC”) program and Servant Stage is an approved EIO.

Why Support via EITC?

Pennsylvania businesses support via the EITC program to enhance their reputation, foster goodwill in the community, and potentially attract customers who value corporate social responsibility. Additionally, investing in Servant Stage’s youth education and educational outreach programs afford the business a generous tax credit.

Example of EITC support

The following in an example of how a Pennsylvania business might support Servant Stage via the EITC program.

  • A business contribues $10,000 to Servant Stage through the EITC program.

  • Depending on the specific details of the program and the business's tax situation, the business could receive a tax credit of up to 90% of their donation amount.

  • If the business qualifies for the maximum credit, they could receive a tax credit of $9,000 (90% of $10,000). This means they can subtract $9,000 directly from their Pennsylvania state tax liability.

  • In this hypothetical example above, a $10,000 donation to Servant Stage via the EITC program would end up affecting the bottom line of the business by only $1,000.

If their state tax liability is, for example, $15,000, after applying the $9,000 tax credit, they would only need to pay $6,000 in state taxes, effectively reducing their tax burden by the amount of the credit.

This demonstrates how participating in the EITC program can significantly benefit businesses by reducing their tax liability while supporting Servant Stage’s education initiatives.

To get started or learn more please click here to email Andrew Zahn or call 717-756-3956.