Pennsylvania Tax Credit Program Expanded

If you work for or own an organization that does business in Pennsylvania, the Department of Community and Economic Development has created a tax credit program that helps take the some of the sting out of paying your taxes.  And new for the 2008-2009 fiscal year, subchapter S-corporations and other “pass-through” business entities will be able to use the credit against PA personal income taxes from the PA business income of the “pass-through” entity. (PDF Application)

The bottom line is that Pennsylvania allows you to send a portion of your tax liability to VFMA instead of to Harrisburg, and still take a tax deduction off your federal tax liability!  Tax credits are more attractive than standard charitable donations because although deductions reduce your amount of taxable income, tax credits reduce your actual tax bill, dollar-for-dollar.  Tax credits are utilized AFTER your tax liability is established.

A Great Way for Businesses to Direct Their Tax Dollars
The EITC has accomplished what many in Pennsylvania have been advocating for years: to get the business community more involved in education.  The tax credit program enables companies to support local non-profit charities, at minimal cost, instead of sending their tax dollars to Harrisburg.  It's that simple.
  
A Lifeboat for our Cadets, a Savings to Pennsylvania Taxpayers
EITC scholarships have provided a lifeboat to families looking to escape failing public schools, as well as to families struggling to remain in independent schools such as Valley Forge.  Each time a child is able to stay at Valley Forge as a result of the EITC, both taxpayers and families win.

Eligibility: Businesses authorized to do business in Pennsylvania 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
• or Personal Income Tax of S corporation shareholders or Partnership partners.

Here’s what you need to know to join the 2,300 companies that take advantage of this tax credit program:

1. Valley Forge Military Academy is an approved Scholarship Organization, meaning you would apply using Appendix I – SO Application for Educational Improvement Tax Credits (Scholarship Org).  We can send you this form or you may want to look at the EITC website: http://www.newpa.com/programDetail.aspx?id=62.
2. There is a $46.7 million cap on these tax credits and applications are accepted after July 1, 2008 – so there’s no time to lose. 
3. The application process is simple—fill out one short form and send it to the state.  When you receive notification from the state (by September 30), you then have 60 days to donate the required funds to Valley Forge.

• Restrictions: Please note that the State prohibits the use of EITC donations in fulfillment of a pledge.  This is a caution to prevent any misunderstanding in the future.

If this seems like more than you want to handle, the chances are that someone in your company or your accountant will know all about this program.  If your company already participates, please don’t be shy about asking company officials to designate Valley Forge as the recipient of your tax credit allotments.  The school will be happy to provide you with materials showing how life changing these scholarships can be for our Pennsylvania cadets.

EITC allocations are used to fund scholarships for our most needy Pennsylvania cadets in the Academy.  Valley Forge recognizes the urgency for alternative academic solutions for young people in economically disadvantaged groups, residing in low socio-economic neighborhoods in major cities as well as rural Pennsylvania.  Today, in America’s inner cities, an entire generation of youth is being abandoned.  Domestic and street violence, crime, teen pregnancy and an aggressive drug trade often displace any hope of moving forward.  Valley Forge Military Academy, acknowledging the severity of this challenge, has developed an Urban Scholars program designed to provide financial aid for youths in economically disadvantaged groups.

We acknowledge a responsibility to offer the Valley Forge curriculum and core values to young people who do not have the financial means to attend. Our Urban Scholars have gone on to not only finish college, but have become Rhodes Scholars and White House Fellows.  The program also encourages the cadet to return to his/her roots to mentor another student and to help them improve their circumstances.

If you have any questions about this program or would like us to send you the forms, please contact the Development Department (development@vfmac.edu) or call Ann Sinatra at 610-989-1327. 

We appreciate your consideration of support to this important program that will create opportunities for young people to reach their full potential in life.  Thank you for partnering with us and with the Commonwealth of Pennsylvania to make this happen.