Education Improvement Tax Credit

 

The Montgomery County-Norristown Public Library has been approved as an Educational Improvement Organization under the PA Educational Improvement Tax Credit Program (EITC). You may want to speak to your accountant to see if your business qualifies.

• What is EITC? Enacted in 2001, the Educational Improvement Tax Credit (EITC) provides a tax credit to businesses that pay Pennsylvania’s corporate income tax for contributions to educational improvement organizations.

• Who can make a gift? Eligible corporations that pay any of the following corporate taxes to the Commonwealth of Pennsylvania:

Corporate Net Income Tax
Capital Stock Franchise Tax
Bank and Trust Company Shares Tax
Title Insurance Companies Shares Tax
Insurance Premiums Tax
Mutual Thrift Institution Tax

• How much of my tax liability may I donate to the Montgomery County-Norristown Public Library through EITC? Pennsylvania’s tax credit is for 75% of a corporation’s contribution of up to $300,000 per taxable year, or 90% of its contribution, if it contributes to The Montgomery County-Norristown Public Library for two consecutive years. Total tax credits authorized for the scholarship program are limited annually, and tax credits are awarded to participating businesses.

• Where do I get an application? The application form is available through the Department of Community and Economic Development at (717) 787-7120 or at www.newpa.com. Select EITC Business Guidelines for further information and the application form.

• When do I submit the application? Applications may be received by the PA EITC Office beginning July 1, 2011.

• Whom should I contact at The Montgomery County-Norristown Public Library to
learn more or to discuss my interest in making an EITC gift? Please contact Tracee Yawger, Head of Youth Services at 610-278-5100 ext. 144 with any questions regarding EITC donations.