Educational Improvement Tax Credits

The state of Pennsylvania created the Educational Improvement Tax Credit program to encourage businesses to support education in the state. Rosemont School of the Holy Child qualifies as a scholarship organization and thus as a recipient of contributions under the act (Act 4 of 2001-Educational Improvement Tax Credits).

Eligibility: Business authorized to do business in the Commonwealth and who are subject to one or more of the following taxes: 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 are eligible.

Advantages to Business: Tax credits equal to 75% of the contribution up to a maximum of $200,000 accrue to the donor business. Tax credits may be applied against the tax liability for the tax year in which the contribution is made. The tax credit will increase to 90% if the business agrees to provide the same support for two consecutive tax years. Contribution to Pre-Kindergarten scholarship organizations may receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $100,000 annually.

Advantages to Rosemont School Students: A scholarship contribution helps families in the local community. Students who may not be able to afford the education offered by Rosemont School of the Holy Child but who would benefit from it would be able to qualify. Because Rosemont School begins with a Nursery program and continues through eighth grade, the school is an apt fit with the tax credit program, which especially values Pre-Kindergarten Education.

Applying for the Tax Credit: Businesses can contact Carole Manley in the Development Office at Rosemont School (610 922-1021). You may also visit the Department of Community and Economic Development at www.newpa.com for an overview of the program or DCED Center for Business Financing, Tax Credit Division: (717)-787-7120 or tknorr@state.pa.us to apply. Tax credits are awarded on a first come-first served basis.