Educational Improvement Tax Credit
What is it?
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.
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).