Impact Your Business Can Make

 How would you like to reduce your Pennsylvania tax liability by making contributions to the Oley Valley Community Education Foundation (OVCEF), an organization whose mission is enhancing educational opportunities for the students, residents, employees, and alumni of the Oley Valley School District? The Pennsylvania Department of Community and Economic Development’s (DCED) Educational Improvement Tax Credit (EITC) Program allows you to do just that.

OVCEF is a qualifying Educational Improvement Organization (EIO) that can turn your contributions into Pennsylvania tax credits. Business can apply for tax credits through the EITC Program and turn contributions to OVCEF into Pennsylvania tax credits. If the business commits to one year of support, a 75% tax credit will be awarded and if the business commits to two consecutive years of support, a 90% tax credit will be awarded. For example, if a business commits to one year of support and contributes $1,000 to a qualifying organization like OVCEF, it will receive a $750 tax credit; or if it commits to two consecutive years of support, it will receive a $900 tax credit each year. As can be seen, a two year commitment will only cost $.10 on the dollar and this cost could be further reduced depending on the tax benefit of the allowed Federal charitable contribution deduction on the contribution. Tax credits not used in the tax year the contribution is made may not be carried forward or back and is not refundable or transferable.

The tax credit is available to offset the following Pennsylvania taxes:

• Corporate Net Income Tax
• Personal Income Tax (via pass through entities)
• Bank Shares Tax
• Insurance Premium Tax
• Mutual Thrift Tax
• Title Insurance & Trust Company Shares Tax

Existing businesses that are already participating in the EITC Program should renew their annual applications on May 15th and any new business that would like to participate in the Program or existing businesses that would like to apply for an additional amount of credit should submit its application on July 1. All applications are submitted through the DCED’s website HERE

If you have any questions regarding the EITC program or how it can benefit you and OVCEF, please send us an email at OVCEF@ovsdpa.org. OVCEF has been a participating EIO for many years and understands how your business and OVCEF can both benefit from the program.