STEPS TO PARTICIPATE/PA EITC Program
Step # 1: CALCULATE how much your estimated corporate tax liability to the State of Pennsylvania will be for the next two years.The following seven categories qualify for credit.
Corporate Net Income Tax
Capital Stock Franchise Tax
Bank & Trust Company Shares Tax
Title Insurance Company Shares Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax
Pass Through Credit for S Corporations, Single Member LLC or Partnerships
Step #2: Allocate your estimated tax liability to scholarship assistance for lower income students at Kimberton Waldorf School. Up to $300,000 a year of your tax liability can be directed annually for scholarship assistance to registered scholarship organizations. The tax year during which you write your donation check is the tax year in which you take the tax credits (see tax details on the PA EITC website, go to www.newPA.com).
Step #3: APPLY for tax credit by completing a one-page application (APPENDIX I - K-12 SO). *Fill out the top portion of the application with your business information. Enter the amount that you are donating to Kimberton Waldorf School. You will receive tax credits equal to 90% of the amount to be donated for a two year commitment or 75% of the amount donated for a one year commitment; provided the same amount is donated in year two.
*Indicate that the amount donated will be to a Scholarship Organization.
*Check the box that describes the type of tax to which your business is subject.
*Indicate if this is your initial application, if you will make a two-year commitment, or if this is a renewal application for your second year of a two-year commitment.
*Sign and date accordingly. Prior to submitting any application we do advise reviewing the completed application with your accountant.
Step #4: WE WILL HAND DELIVER your application to Harrisburg on July 2, 2012. *IMPORTANT: Businesses that wish to apply for Personal Income Tax Pass Through Credits for S Corporation Shareholders, single member LLC or Partnerships apply for credits on July 9, 2012.This restriction does not apply to year 2 of 2-year applications.
For applicants filing for the first year of either a one or two-year commitment the state must receive your application this year on Monday, July 2, 2012 or *July 9, 2012 as discussed in Step 4. Please remember that this deadline is crucial; early applications will be rejected by the state and late applications will most likely not qualify (it is likely that all available tax credits will be used up on the first day!). Alternately, you may FAX (717) 772-3581 or EMAIL your completed application during the morning of July 2, 2012 or on July 9, 2012 for pass through credits applications.
REMINDER: For applicants filing for the second year of a two-year commitment: Fax or send renewal applications between May 15, 2012 and June 29, 2012. Second year renewal applications are processed prior to all new applications.
Department of Community and Economic Development
The Education Improvement Tax Credit Program
Center for Business Financing – Tax Credit Division
400 North Street, 4th Floor, Commonwealth Keystone Building
Harrisburg, PA 17120 – 0225
Telephone: (717) 787-7120 Fax (717) 772-3581
EMAIL
Web Site: www.newPA.com: SEARCH PA EITC Program
Step #5: WRITE YOUR CHECK to Kimberton Waldorf School after you receive notification from the state that your business has been approved for tax credits. You have 60 days from the date of notification to send your check to Kimberton Waldorf School in order to maintain your qualification for these credits. Kimberton Waldorf School will immediately acknowledge your donation in writing.
Step #6: SEND the state a copy of the acknowledgement letter from Kimberton Waldorf School as soon as you receive it from our business office. The state must receive this letter within 90 days of its original acceptance letter to you in order to ensure proper credit.