The Hill School is pleased to announce its status as an approved Scholarship Organization in the Commonwealth of Pennsylvania’s Educational Improvement Tax Credit (EITC) program.
The EITC program encourages private businesses in Pennsylvania to make contributions directly to eligible schools in exchange for substantial tax credits.
Specifically, the EITC program offsets financial aid expenses, which will help The Hill to maintain and increase its diversity. Support of The Hill School through the EITC program allows The Hill to “make its educational experience available to the most capable students regardless of their financial circumstances.” Students eligible to receive EITC funds must be Pennsylvania residents and their families must make a household income of less than $50,000 with an allowance of $10,000 for each additional dependent.
The EITC provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization. The tax credit increases to 90% if the company commits to making the same donations for two consecutive years. A business paying taxes in Pennsylvania may receive up to $300,000 in tax credits annually; the EITC program enables a Pennsylvania business to direct up to $300,000 of its Pennsylvania state tax dollars directly to The Hill School’s tuition assistance program. At least 80% of the contribution must go toward scholarships, while the remainder may be used by The Hill School as unrestricted operating income.
Pennsylvania businesses eligible to become Educational Improvement Organizations must be authorized to operate in Pennsylvania and subject to one or more of the following taxes: Corporate Net Income Tax (CNI); Capital Stock and Franchise Tax; Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; Mutual Thrift Institutions Tax and S Corporation Income Tax of S Corporation Shareholders.
It is important to discuss the tax implications and timing of submissions with a financial consultant. More information and the application can be found at
www.newpa.com or by calling 717-787-7120. Please contact Melissa Karas, Director of Advancement Services, with questions related to The Hill School at
mkaras@thehill.org or 610-326-1000.