Educational Improvement Tax Credit Program (EITC)

Turn Your Business Tax Liability into Scholarships

For Virtually NO COST to Your Business

WHAT IS AN EDUCATIONAL IMPROVEMENT TAX CREDIT?

It is a Pennsylvania tax credit for businesses that make a donation to a scholarship organization. Organizations will award needs-based scholarships to children across Pennsylvania to assist them in attending the schools of their choice. 

WHY CHOOSE THE JEWISH FEDERATION OF THE LEHIGH VALLEY
AS YOUR SCHOLARSHIP ORGANIZATION?

Since 2001, the Federation has been able to distribute over $1.8 million in scholarships benefiting low-income families at the Jewish Community Center and the Jewish Day School.

 

HOW CAN I GET A MAJOR TAX CREDIT FOR MY BUSINESS FOR
JUST PENNIES ON THE DOLLAR?

Determine if you qualify

Individuals, businesses or corporations qualify if they pay any of the following taxes:

  • Corporate Net Income Tax
  • Capital Stock and Franchise Tax
  • Bank and Trust Company Shares Tax
  • Title Insurance Companies Shares Tax
  • Insurance Premiums Tax
  • Mutual Thrift Institutions Tax
  • Shareholder and Partner personal income tax (S Corps and Partnerships with pass-through tax liability)

Apply ON July 3, 2017

 

  • Contact Jim Mueth at the Jewish Federation of the Lehigh Valley at 610-821-5500 or jim@jflv.org BEFORE THE DEADLINE for help preparing your application.
  • See our STEP BY STEP GUIDE for more about how to apply.
  • Complete your APPLICATION PREPARATION FORM to get ready for the deadline.
  • Submit your application HERE, but be aware that spots fill up fast and generally do not extend beyond the day the application is due.

Make the Jewish Federation of the Lehigh Valley the recipient

 

Once approved by the Department of Community and Economic Development, your business must contribute to a qualified scholarship organization such as the Jewish Federation within 60 days. You need to send proof of the contribution to DCED within 90 days of the approval. The Federation will send an acknowledgement letter as proof of your contribution, and you are required to send a copy of this letter to DCED

 

HOW CAN EITC BENEFIT ME OR MY BUSINESS?

Simply put, you contribute money for educational scholarships and the EITC credits lower your tax liability. Some companies find that when they add in federal tax deductions, they save the same amount on taxes that they contributed to scholarships -- a ZERO-COST CONTRIBUTION.

The Federation participates in all of the following tax credit programs:

K-12 Scholarship Organizations

 

  • 1-year commitment: 75%
  • 2-year commitment: 90% each year
  • Full amount deductible as a charitable contribution for federal tax purposes, subject to federal rules

Pre-School Scholarship Organizations

 

  • 100% for the first $10,000
  • 90% for the remainder of the contribution
  • Full amount deductible as a charitable contribution for federal tax purposes, subject to federal rules

Opportunity Scholarship Tax Credit

 

  • 1-year commitment: 75%
  • 2-year commitment: 90% each year
  • Full amount deductible as a charitable contribution for federal tax purposes, subject to federal rules

HOW DOES EITC CHANGE LIVES?

"These funds make dreams possible for parents who normally wouldn't even walk through the door of the JCC because they can't afford it, but who care about the quality of their children's education so much that they ask for help anyway."

 

- Alexa Karakos, Early Childhood Education director at the Jewish Community Center

"Businesses can make these donations at little to no cost; the result is invaluable to the students and their families. It does wonders for us, but it means the world to the families."​


- Amy Golding, head of school at the Jewish Day School, where approximately 30% of students benefit from EITC ​

WHAT BUSINESSES HAVE BENEFITED FROM EITC THROUGH THE JEWISH FEDERATION?

"There are great needs in our community and the EITC program is an enormous help and really doesn’t cost anything to do. The Jewish Federation of the Lehigh Valley has been a wonderful partner with our bank helping us grow our desire to impact the lives of Lehigh Valley families.”

 

- Buddy Lesavoy, Embassy Bank Board of Directors

To learn more, contact Jim Mueth at the Jewish Federation of the Lehigh Valley at 610-821-5500 or jim@jflv.org. 

Some of the businesses that have participated in EITC through the Jewish Federation 

 

  • American Bank
  • Embassy Bank
  • Highmark Insurance
  • Lexus of Lehigh Valley
  • Manufacturers and Traders Trust Co.
  • Mortgage America
  • Susquehanna Bank
  • UHS of Delaware
  • Wealth Strategic Management
  • Weis Markets