Educational Improvement Tax Credit (EITC) Program
The Northampton Area Konkrete Kids Educational Foundation is proud to announce that the Pennsylvania Department of Community and Economic Development has approved the Foundation for the State’s Educational Improvement Tax Credit (EITC) Program.
What is the EITC Program?
The Educational Improvement Tax Credit (EITC) Program authorizes tax credits (not deductions) for businesses that make contributions to Educational Improvement Organizations, such as the Northampton Area Konkrete Kids Educational Foundation. Administered by the Pennsylvania Department of Community and Economic Development (DCED), the EITC Program enables companies to support nonprofit school foundations at minimal cost. Instead of sending tax dollars to Harrisburg, companies can reallocate those dollars to support the Northampton Area School District via the Northampton Area Konkrete Kids Educational Foundation.
What is the benefit for NASD students?
In the Northampton Area School District, the EITC funds are currently being used to fund the Dual Enrollment Program at Northampton Area High School. The Program is a partnership between NAHS and Northampton Community College which enables 11th and 12th grade students in “good academic standing” to enroll in college level courses while still enrolled in classes at the High School, and to receive both college and high school graduation credits for the college courses they successfully complete. Saving money is the primary benefit for students taking college courses while still in high school. Saving time is another benefit since students taking college courses during high school provides students with the opportunity to utilize their time earning college credits in place of electives. Finally, dual enrollment students will better understand the academic expectations of college and post-high school education.
What is the benefit for businesses approved for the EITC program?
An approved EITC business can significantly reduce their liability for Pennsylvania taxes while they support the Northampton Area Konkrete Kids Educational Foundation, which enhances educational opportunities for NASD students. By participating in the EITC program, a business also gains the public relations benefits that occur whenever a company supports a worthy cause in the area where it does business.
How much tax credit can a business receive?
The tax credit is a 75%-90% credit (against taxes owed). To gain the maximum 90% tax credit, a company must provide a written two-year commitment of equal funding to an education foundation. Companies can effectively get a dollar-for-dollar credit for an EITC donation because if a company has not maximized their percentage of charitable donations, they can also deduct their contribution on their federal tax return.
How do businesses apply for the tax credit?
Visit www.newpa.com/eitc and click on “EITC Guidelines” to read the business guidelines and application process.
Current EITC Contributors
Community Charitable Foundation for People's Security and Trust