Pennsylvania Educational Improvement Tax Credit Program
What is the PA Educational Improvement Tax Credit (EITC) Program?
Businesses who support Temple may be eligible for a tax credit through Pennsylvania’s Educational Improvement Tax Credit Program
Temple University is a recognized Educational Improvement Organization (EIO) under Pennsylvania's Educational Improvement Tax Credit Program. This program provides companies with a direct tax credit of up to 90 percent for a two-year commitment toward the amount a business owes in state taxes. Contributions to Temple through the EITC program leave companies with a much smaller state tax bill, while supporting Temple’s vital, high-quality educational programs serving Philadelphia’s public school children. For more information, please visit the EITC website.
Since its inception, Temple University has partnered with the community to increase educational access and opportunities for all Philadelphians through academic programs, community outreach initiatives, volunteerism, and research. Temple’s innovative educational programs for Philadelphia public schoolchildren bring the resources and academic expertise of a comprehensive, national research university to children attending under-resourced schools.
Temple University has two EIO-approved programs:
The Community Music Scholars Program (CMSP) of the Boyer College of Music and Dance provides a comprehensive program of jazz and classical music instruction for school-aged Philadelphia children who have limited financial means. The CMSP currently services approximately 250 students from Philadelphia public and parochial elementary and secondary schools.
The Mathematics Engineering & Science Achievement (MESA) Initiative of the College of Engineering builds on a 30-year old national model for one of the most successful STEM education and diversity programs in the U.S., helping women and minority students become scientists, engineers and mathematicians. In 2011, Temple was awarded the national license to coordinate MESA in Pennsylvania. MESA currently serves nearly 500 Philadelphia schoolchildren, primarily first-generation-to-college students of color.
How Does it Work?
Your company’s charitable giving becomes a low-cost gift when you redirect your state business taxes to the participating EIO of your choice.
- A one-year commitment will earn you a state tax credit of 75% of your contribution. A business that agrees to provide the same amount for two consecutive tax years will earn a credit of 90%.
- The non-credited portion of the gift can be claimed as a charitable contribution for federal tax purposes.
- Businesses may request up to $750,000 in tax credits per year.
- Eligible entities include businesses subject to the following taxes:
- Corporate Net Income Tax
- Capital Stock/Foreign Franchise Tax
- Bank Shares Tax
- Title Insurance and Trust Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Tax
- Gross Receipts Tax
- Tax under the Insurance Company Law of 1921
- Personal Income Tax
How Does My Company Apply?
All applicants are required to submit applications electronically through www.newpa.com. The business application guide explains the process of applying. Businesses must apply specifically for EIO credits if they wish to support Temple’s programs.
New businesses may apply beginning July 1. Applications are approved on a first-come, first-served basis by date submitted.
The Department of Community and Economic Development will send an approval letter to businesses awarded educational improvement tax credits. The business then has 60 days to send its philanthropic contribution to Temple University c/o Corporate and Foundation Relations, Institutional Advancement, TASB, 2450 West Hunting Park Avenue, Philadelphia, PA 19129. Temple University will issue a gift acknowledgment which the business must send to the Department of Community and Economic Development within 90 days of the original approval letter. After sharing this written acknowledgment with the department, the business will receive the amount of tax credits outlined in the original approval letter.
For More Information
For specific information on how this program can benefit your business please contact your accountant and/or financial advisor.
To learn more about how your business can contribute to Temple through the EITC Program, please contact Corporate and Foundation Relations at (215) 926-2648.
Temple University is grateful for all contributions through the EITC Program.