Your Business Can Assist Students at St. Catherine of Siena School
Business Leadership Organized for Catholic Schools, 222 North Seventeenth Street, Suite 709 • Philadelphia, Pennsylvania 19103 • Phone (215) 587-0590 • Fax (215) 667-2834, blocs@adphila.org
Give back to your alma mater; help ensure a competent and skilled workforce for the local business community; help give area families the choice to send their children to receive a quality education – these are just a few of reasons why your business should participate in the Pennsylvania Educational Improvement Tax Credit (EITC) program.
The EITC program allows businesses (both corporations and partnerships) to effectively pay part of their state business taxes through state-certified, non-profit scholarship organizations (i.e,. BLOCS). BLOCS, in turn, distributes those dollars directly to financially eligible families as tuition subsidies, regardless of their race, religion or nationality.
Businesses that participate receive a 75% credit toward taxes owed; however, if that business provides a written, two-year commitment of equal funding, the tax credit is raised to a full 90%. Businesses, and any of their operating subsidiaries, are allowed to make contributions of up to $200,000. For business entities that are new to the EITC program, a business must be subject to one of the following six Pennsylvania business taxes:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Title Insurance Companies Shares Tax
When a business makes a donation to BLOCS through the EITC program, they also have the option of designating their donation to a specific Archdiocesan school (s), if desired, BLOCS is the official Archdiocesan scholarship organization that represents the Elementary, Secondary, Special Education schools, as well as, many Private Catholic schools in our five county region (Bucks, Chester, Delaware, Montgomery and Philadelphia). BLOCS is one of nearly 200 registered, non-profit scholarship organizations authorized to participate in the EITC program. The EITC program’s popularity has led to the birth of many more scholarship organizations across Pennsylvania, and as such, this program has become very competitive, as more and more organizations are vying for the limited tax credits available. In the 2005-2006 fiscal year, the $29.7 million in tax credits available to eligible companies were exhausted in just one day (from the start of the program’s fiscal year which begins on July 1st). Because the tax credits were exhausted so quickly, we are strongly encouraging companies to begin the one page application process (which is a request for participation on a first-come, first serve basis) and return it directly to the BLOCS office.
The EITC program has produced what many in Pennsylvania have been advocating for years: a means for the business community to be involved with education. The EITC program enables companies to support local students by routing their tax payments through local non-profits as tuition assistance subsidies. It’s that simple—reviewing and completing this one page application can help change the lives of so many families throughout our area who otherwise could not afford the option of a quality, value-based education.
The EITC program is making a significant difference to many of our families who are struggling to provide their children with a solid academic foundation.
For more information, please contact the BLOCS office at (215) 587-0590 or blocs@adphila.org.
Five (5) Easy Steps to Help Local Students and Pay Your Business Taxes All at the Same Time!
- Your company decides to help and completes the EITC application
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- The state grants your company permission to participate in the program and reserves the tax credits you requested.
- Your company then has up to sixty days to submit your contribution (75% or 90% of which is your actual tax payment) to the BLOCS office.
- This donation is then acknowledged by BLOCS and the school(s) families are then allocated those funds as scholarships the following school year.
- Your company then publicizes this worthwhile contribution and celebrates its new-found ability to spend their business tax dollars in a significant and fulfilling way; by helping students receive a great education and building a stronger labor force for our area.
IT’S REALLY THAT SIMPLE.