DCED Announces Changes to Educational Improvement Tax Credit Program

News provided by

Pennsylvania Department of Community & Economic Development

Jul 02, 2012, 10:21 ET

HARRISBURG, Pa., July 2, 2012 /PRNewswire-USNewswire/ -- Department of Community and Economic Development (DCED) Secretary C. Alan Walker today announced new changes to the Educational Improvement Tax Credit (EITC) program, including the consolidation of the two separate business application dates and an increase in tax credits available.

"To simplify the process, staggered application dates for different classes of businesses will be consolidated to one date for all business," said Walker. "Through a simplified application process and a larger budget, the new changes to the EITC program will benefit both school districts and businesses alike."

Through EITC, eligible businesses can contribute donations to a Scholarship Organization, Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made. The tax credits awarded to businesses will be equal to 75 percent of their contribution amount, which can be increased to 90 percent upon the business committing for two years.

The EITC program has increased from $75 million to $100 million for the fiscal year that began July 1. Effective immediately, all business entities are eligible to apply.

Another new change is the establishment of the Opportunity Scholarship program, a $50 million tax credit program. Scholarships will be offered to students currently enrolled in public schools which are ranked among the lowest 15 percent of underperforming districts. The scholarships will allow eligible students to withdraw from their current district and enroll at a public school outside of their district or at a nonpublic school.

Applications must be submitted to DCED's Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120; or via e-mail to [email protected]. 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.

To learn more about EITC, visit www.newPA.com and search "Educational Improvement Tax Credit" or call 717-787-7120.

Media Contact: Steve Kratz, 717-783-1132

SOURCE Pennsylvania Department of Community & Economic Development