Educational Improvement Tax Credit Program (EITC)

Hoffman Academy is our onsite onsite day school for both our youth in care and eligible day students who are coping with severe mental health and behavioral issues. The Academy (listed on the EITC site as “Hoffman Homes, Inc.”) is a designated Educational Improvement Organization (EIO), eligible to receive corporate contributions through Pennsylvania's Educational Improvement Tax Credit (EITC) program.

Hoffman Academy serves children throughout the region who require a specialized and differentiated education due to a diagnosis of a social or emotional disability, a mental health diagnosis, chronic violation of school rules, academic failure or other behavioral concerns. 

Funds received through the EITC program through generous community and regional businesses and organizations are in investment in our children. These funds will support our students' complex educational and emotional needs, better enabling them to recognize and fulfill their potential. 

Your gift gives our students a chance at a brighter future. 

We'd love to help! To schedule a meeting with a member of our executive team to learn more about Hoffman Academy, the business application process and how EITC can benefit your business and our youth in care, please contact VP of Marketing & Development Kris Roeder at kroeder@hoffmanhomes.com or call 717-359-7148, ext. 4500. 


What is EITC?

Established by the Pennsylvania General Assembly, the Educational Improvement Tax Credit (EITC) program enables businesses to contribute to an Educational Improvement Organization (EIO) in lieu of tax liability. Hoffman Academy is an approved EIO. Each year, the state sets aside millions of dollars for educational improvements through this program. Your EITC designation to Hoffman Academy will help us put those tax dollars to work for children in need, living, learning and healing, right here in our local community…helping students right here at home who are coping with severe psychological, emotional and behavioral issues.  

If you pay corporate taxes to the state of Pennsylvania, you can now make a huge difference in the lives of our students, while benefitting your organization. Please consider making Hoffman Academy your organization's EITC designee. 

 
How does my business benefit?

The EITC program allows businesses to direct their tax dollars, enabling the Pennsylvania business community to directly support education. Through EITC, companies can support approved, local non-profit charities of their choosing, making a direct impact on the quality of education for kids throughout the Commonwealth. 

The EITC program offers tax credit to participating organizations in the amount of the donation made. If a company has not maximized its percentage of charitable donations, it can also deduct the EITC contribution on its federal tax return. (As each company's tax situation is different, organizations should consult with their tax preparers, to fully understand and maximize their benefit.) 

A gift to Hoffman Academy can provide your company with a substantial tax credit. By making a contribution that benefits our students, a company can receive PA state tax credits equal to 75% of its contribution(s) up to a maximum of $750,000 per taxable year. With a two-year commitment, this credit can be increased to 90% of the contribution. Your support of Hoffman Academy through the EITC program will help in the school's efforts to create a differentiated, progressive curriculum that addresses the needs of our students with complex mental health and behavioral concerns.

 
How does my business apply for the tax credit to support Hoffman Academy?

The process is fairly simple. Businesses are required to submit a brief online application to the DCED stating what amount they plan to contribute. Once it receives the completed application, the DCED will notify businesses of their application approval. Within 90 days of receiving the approval notification letter, businesses must provide proof to DCED that their contribution was made within 60 days to an approved EIO such as Hoffman Academy.

Applications are only accepted online. Applications must be submitted electronically using DCED's Single Application for Assistance

All applications are approved on a first-come, first-served basis by date received  the earlier you submit, beginning on July 1 for new businesses, the better for Hoffman Academy!

Applications for 2016-2017 will be accepted on July 1, 2016  — no earlier —  and it is best to apply as close to July 1 as possible, as EITC funds are allocated  and exhausted quickly. We recommend that participating businesses complete the online form ahead of time, to allow for any questions that might arise, and have it ready to go on July 1. 

 
Eligibility and Guidelines for Participating Businesses

Businesses authorized to do business in Pennsylvania that are subject to one or more of the following taxes are eligible to participate in the EITC Program:

  • Personal Income Tax
  • Capital Stock/Foreign Franchise Tax
  • Corporate Net Income Tax
  • Bank Shares Tax
  • Title Insurance & Trust Company Shares Tax
  • Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
  • Mutual Thrift Tax
  • Malt Beverage Tax
  • Retaliatory Fees under section 212 of the Insurance Company Law of 1921
In addition, most subchapter S-corporations are now able to participate passing through the tax credit on their personal income tax.

  • July 1: C-corporations and S-corporations can submit their new EITC applications on July 1. (=75% tax credit) 
  • May 16: C-corporations and S-corporations entering their second year of a two year commitment can submit their annual applications on May 16. (=90% tax credit)
  • May 16: Businesses that have just completed a two-year commitment may submit their applications for another two-year renewal on May 16. (=90% tax credit)
For the complete business guidelines, please click here.

Businesses must file their applications to the Department of Community and Economic Development (DCED) electronically through the single online application website. For a user desktop guide on how to file the electronic application, please click here.

The PA Department of Revenue's EITC Pass Through Election Form can be found here.

For more information about the EITC Program, visit DCED website or call 717-346-8005.

 
EITC application deadlines

The program year is July 1 through June 30. The EITC filing date for participating businesses is July 1 for first-year applications and May 16 for business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 16/17 to renew their 2-year commitment, as well as for businesses that are in the middle of their 2-year commitment. Applications for tax credits are processed until the credits are exhausted; therefore it is important for your business to submit your application on July 1.


Timing

The electronic application can be completed in advance of the application due dates and submitted on the date noted, or as soon as possible thereafter.

May 16, 2016

EITC applications are accepted for companies who have fulfilled their two-year commitment and would like to renew for the coming year, as well as for businesses currently in the middle of their two-year commitment.

July 1, 2016

Applications are accepted for all businesses newly interested in participating in the EITC program. A random lottery will be held among all valid applications received on this date to determine participating businesses until all funds have been exhausted. (EIO funds are all claimed on July 1st.)

Easy online application available on the  DCED website.

 
Thank you to the following generous EITC donors! Please consider supporting the community partners that support us...Together, we are changing lives, and your patronage ensures that we can continue providing an excellent education for kids in crisis: