Tax Credits

Each year, more than 20 businesses participate in the EITC program, providing over $400,000 in financial scholarships for qualifying families.

In 2001, the Pennsylvania Department of Revenue enacted the nation’s first educational tax credit aimed at corporations. House Bill 966 authorized awarding tax credits to businesses that contribute to a non-profit Scholarship Organization, an Educational Improvement Organization and/or a Pre-Kindergarten Scholarship Organization. For businesses, this significantly reduces their state tax liability.

Dock Mennonite Academy receives support from the EITC program through the Pennsylvania Mennonite Schools Organization (PAMSO) via the Mennonite Foundation. This support provides tuition assistance for students and families who demonstrate financial need.

---

Eligibility

• A business may apply for tax credits if they are subject to one or more of the following taxes:
• Corporate net income tax
• Capital stock franchise tax
• Bank and trust company shares tax
• Title insurance companies shares tax
• Insurance premiums tax
• Mutual thrift institution tax
• Insurance company law of 1921
• Personal income tax of S corporation shareholders or partnership partners

Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.

---

Business Application Timeline

• May 15 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in the current fiscal year to renew a 2-year commitment
• May 15 – Businesses who are in the middle of a 2-year commitment
• July 1 – All other businesses including Pre-K business applications
• Applications must be submitted electronically using DCED’s Single Application for Assistance.
• Review the Business Application Guide
• Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications.
• Applications will be approved until the amount of available tax credits is exhausted.

Terms

Upon approval, businesses will receive a letter from the Department of Community and Economic Development (DCED). An approved business then has 60 days to mail their contribution to an approved Scholarship Organization such as Mennonite Foundation. Upon receipt of the contribution, the Scholarship Organization will mail a receipt letter to the business which can then be forwarded to the DCED in order for the business to receive their tax credits. 

The entire process must take no more than 90 days from the date of approval.

Do you have an annual Pennsylvania income tax liability of $2,000 or more?

Would you like to redirect your PA personal income taxes for financial aid to benefit qualifying children and young people at Dock Mennonite Academy?

Consider the Special Purpose Entity (SPE) option under the Educational Improvement Tax Credit (EITC) program. You can participate in this option with just a few simple steps—in fact, you can apply right now and be approved! A simple one-page application is all that is needed.

---

Giving $10,000 will only cost you $1,000

If you direct $10,000 of your PA income tax dollars to the SPE instead of paying it to the state in quarterly estimates, you will receive a 90% PA tax credit and designate the $10,000 to students at Dock Mennonite Academy. Therefore, it “costs” you $1,000 out of pocket to provide $10,000 of financial assistance to qualifying students at Dock. 

This program is managed by the Central Pennsylvania Scholarship Fund (CPSF). Dock works with CPSF because the organization does not charge any administrative fees, ensuring that Dock students receive 100% of your contribution. 

---

Get Started

To enroll in SPE or learn more, please contact Bob Rutt, Director of Advancement, at rdrutt@dock.org or 215.362.2675.