The Educational Improvement Tax Credit (EITC) is administered by the Department of Community & Economic Development (DCED) under Act 48 and awards tax credits to businesses that make contributions to scholarship organizations and/or educational improvement organizations that are on a list approved and published by DCED.
The New Birth of Freedom Council, Boy Scouts of America is an approved educational improvement organization for workforce development and STEM programs therefore your tax dollars can help our council develop the business leaders of tomorrow through Exploring and STEM Scouts.
New Birth of Freedom Council, BSA
- Is an approved EITC non-profit under the Educational Improvement Organization side of the tax credit program for the career exploring and STEM Scouts programs.
- Exploring is career education program for young men and women who are at least 14 (and have completed 8th grade) and not yet 21 years old. Exploring is all about helping young adults make a more informed decision about future careers and determine if a particular career is the right one for them.
- STEM Scouts is a coed program grades 3 through 12 offering
learning experiences in science, technology, engineering and math through creative, hands-on activities, field trips and interaction with STEM professionals. STEM Scouts follows the Scout Oath and Law with the goal of producing young men and women who are leaders, display confidence, realize their skills and limitations, are respectful of others’ opinions, are problem solvers in all aspects of life, look for opportunities to serve others, are good citizens and demonstrate integrity in all phases of life.
- Making a two-year pledge to the council makes your company eligible to receive a 90% tax credit, taking your contribution to a much higher level.
- For example, to give a $100,000 contribution, $10,000 would be an out-of-pocket expense for your company. The remaining $90,000 would be your state tax money, redirected to the New Birth of Freedom Council, BSA through your two-year tax credit approval.
- We would be happy to have one of our Development Team members share this information with your CFO. Please contact Brian DeBease at 717-620-4520 or firstname.lastname@example.org.
Deadlines for business applications:
- May 15 – Business applications who have fulfilled their 2-year commitment and wish to reapply to renew their 2-year commitment.
- May 15 – Businesses who are in the middle of their 2-year commitment.
- July 1 – All other businesses including Pre-K business applications.
Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc. can now apply the same day as C-Corporations. Applications must be submitted electronically using DCED’s Single Application for Assistance weblink. Paper business applications will no longer be accepted. To start the application process, click the following link: Application Login
Applications will be approved until the amount of available tax credits is exhausted. A business that has been approved for tax credits and has agreed to make the same amount of contribution for two consecutive tax years must submit its application to receive its second year of tax credits to the Department no later than June 30 of the first program fiscal year in order to be assured that tax credits will be available for the second year of the contribution.
Applications for the second year of a two-year commitment will be accepted beginning May 15 and, if received by the Department on or before June 30, will be processed prior to any other applications for tax credits received by the Department.
Applications for the second year of a two-year commitment that are not received on or before June 30 will be processed on a first-come-first-served basis by day submitted, along with all other business applications received by the Department, with no assurance that tax credits will remain avail able at the time of processing.
Does your company pay one of the following PA taxes?
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank & Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
If yes, your company may be eligible to receive tax credits which can be used to support approved educational organizations.
Amount of Credits
A business will be approved for a tax credit equal to 75% of its contribution up to $300,000 per taxable year. If the business pledges the same amount of contribution to the organization for 2 consecutive years, the tax may be increased to 90% of the contribution, up to a maximum of $300,000 per taxable year.
For example: A contribution of $100,000 pledged to the New Birth of Freedom Council, BSA for 2 consecutive years would only require a $10,000 donation. Your state tax dollars will provide the rest of the contribution, allowing your donation to the BSA to reach a much higher level!
Eligible businesses must submit a completed application to DCED. Applications can be downloaded below. Applications are accepted yearly beginning June 30. Applications are processed on a first-come-first-served basis by day submitted. Funds are limited, so it is imperative that your application is submitted on this day.