EITC: A Win-Win For Wesley Spectrum and For You!

The Educational Improvement Tax Credit (EITC) provides great benefits for Wesley Spectrum Services and proves to be a win-win proposition for business entities. Last year, through EITC funds, Wesley Spectrum was able to provide student scholarships, expand our General Technology classes with a Computer Aided Design (CAD) program, engage students with an individualized online math tutoring program, and purchase equipment required to open a student facilitated broadcast studio and a complete sound, video and lighting system for our hands-on music program.

This year, your business may make a contribution to Wesley Spectrum through the EITC in support of innovative educational opportunities or scholarships and receive 90-100% of your gift as a PA tax credit and receive the benefit of a charitable deduction for the full amount of your gift on your company’s federal income tax return.

For Wesley Spectrum’s Educational Improvement Organizations (Wesley Spectrum Academy and Wesley Spectrum Highland School): Tax credits are equal to 90% of the contribution, if a business agrees to provide the same amount for two consecutive tax years, and up to 75% of its contribution for amounts given for only one year. Credit maximum is $200,000 per taxable year

For contributions to Wesley Spectrum’s Pre-kindergarten Scholarship Organization: a business 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.

For example, if your business makes a $10,000 gift to Wesley Spectrum Services’ Educational Improvement Organization for two years in a row, each year your business will receive a $9,000 PA tax credit; also, at the same time, your business can record a $10,000 charitable donation each year on your federal income tax return.

Applying for the Pennsylvania Educational Improvement Tax Credit is a simple two-step process:

1. Complete and submit the short application. It is available online from the EITC page Educational Improvement Tax Credit Program (EITC), by scrolling down to EITC Business Guidelines which will allow you to download the guidelines and an application. It is important to apply in a timely manner because tax credits are often quickly depleted.

2. After you receive approval of your application, within 60 days, make your gift to the Wesley Spectrum Services Foundation.

Applications for the EITC fiscal year, which runs July 1, 2007 to June 30, 2008, are being accepted on a first-come-first-serve basis beginning July 2, 2007. Over $40 million in tax credits will be awarded for educational improvement tax credits. By receiving the educational improvement tax credit, your tax dollars that would otherwise go to Harrisburg now can directly provide funds to support the children and families that benefit from Wesley Spectrum’s educational programs.

There are two common taxes for which your business may be eligible to receive the PA tax credit:

1. Corporate Net Income Tax

Paid by C Corporations

Paid by Professional Corporations (PC)

2. Capital Stock Franchise Tax

Paid by C Corporations

Paid by S Corporations

Paid by Limited Liability Companies (LLC)

Paid by Professional Corporations (PC)

Other taxes that your business may pay that also qualify for the PA tax credit include the following:

Bank and Trust Company Shares Tax

Insurance Premiums Tax

Title Insurance Company Shares Tax

Mutual Thrift Institutions Tax

If your organization meets with the above criteria, and you would like to know more about the PA tax credit or Wesley Spectrum Services, it would be a privilege to meet with you or a representative from your organization.

Wesley Spectrum delivers quality services to more than 3,000 children and 7,000 family members annually. Public sector funding often falls short of the full cost of care. If Wesley Spectrum were to receive EITC dollars, we will ensure responsible stewardship as we passionately advance our mission to provide transformational support for children and families as they strive to become more independent, responsible and caring members of the community.

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