Click here for the PA EITC Business Guidelines and Applications (revised August 2008).

 
Give back to your alma mater; help ensure a competent and skilled workforce for the local business community; help give area families the choice to send their children to receive a quality education – these are just a few of reasons why your business should participate in the Pennsylvania Educational Improvement Tax Credit (EITC) program.

The EITC program allows businesses (both corporations and partnerships) to effectively pay part of their state business taxes through state-certified, non-profit scholarship organizations (i.e,. BLOCS). BLOCS, in turn, distributes those dollars directly to financially eligible families as tuition subsidies, regardless of their race, religion or nationality.

Businesses that participate in the K-12 EITC Program can receive up to a 75% tax credit toward taxes owed; however, if that business provides a written, two-year commitment of equal funding, the tax credit is increased to a full 90%. Businesses, and any of their operating subsidiaries, are allowed to make contributions of up to $300,000 per taxable year.

Businesses that participate in the Pre-K EITC Program can receive a 100% tax credit for the first $10,000 of a contribution and 90% thereafter up to a maximum tax credit of $150,000 per taxable year. Pre-K EITC commitments are only for one year.

A business must be subject to one of the following seven Pennsylvania business taxes to participate:

    · Corporate Net Income Tax
    · Capital Stock Franchise Tax
    · Bank and Trust Company Shares Tax
    · Insurance Premiums Tax
    · Mutual Thrift Institutions Tax
    · Title Insurance Companies Shares Tax
    · Personal Income Tax of S Corporation Shareholders, or partners in a limited or general partnership

When a business makes a donation to BLOCS through the EITC program, they also have the option of designating their donation to a specific Archdiocesan school(s), if desired.

BLOCS is the official Archdiocesan scholarship organization that represents the Elementary, Secondary, Special Education schools, as well as, many Private Catholic schools in our five county region (Bucks, Chester, Delaware, Montgomery and Philadelphia). BLOCS is one of nearly 200 registered, non-profit scholarship organizations authorized to participate in the EITC program. The EITC program’s popularity has led to the birth of many more scholarship organizations across Pennsylvania, and as such, this program has become very competitive, as more and more organizations are vying for the limited tax credits available. In the 2005-2006 fiscal year, the $29.7 million in tax credits available to eligible companies were exhausted in just one day (from the start of the program’s fiscal year which begins on July 1st). Because the tax credits were exhausted so quickly, we are strongly encouraging companies to begin the one page application process (which is a request for participation on a first-come, first serve basis) and return it directly to the BLOCS office.

The EITC program has produced what many in Pennsylvania have been advocating for years: a means for the business community to be involved with education. The EITC program enables companies to support local students by routing their tax payments through local non-profits as tuition assistance subsidies. It’s that simple—reviewing and completing this one page application can help change the lives of so many families throughout our area who otherwise could not afford the option of a quality, value-based education.

The EITC program is making a significant difference to many of our families who are struggling to provide their children with a solid academic foundation.

For more information, please click on the appropriate link below:
    · for businesses
    · for families and/or school communities

Interested businesses, families and/or school communities may contact the BLOCS office at (215) 587-0590 or blocs@adphila.org.