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Dear Friend of CB Cares,
Did you know? Your support of the programs of CB Cares can bring a 75% or 90% tax credit to your business?
CB Cares depends on several sources of funding for these very effective programs. In addition to grants, donations, and sponsorships, we are fortunate to be attached to the Educational Improvement Tax Credit Program (EITC) of the State of Pennsylvania which allows businesses to donate to CB Cares and take a substantial tax credit. The commitment can be one year or two, and the application process is simple; a one-page application is all that is required.
If you pay corporate taxes to the state of Pennsylvania, you can send your state tax to CB Cares instead of to PA! A PA tax credit allows businesses to multiply their donation 10 times- and make 10 times the difference in the life a student in Central Bucks.
If you would like to learn more, visit www.newpa.com, or better still, you or your accountant can contact Cindy Bergvall at 215-343-2727. Cindy is a CB Cares Board Treasurer.
It’s a WIN-WIN for your business, CB Cares, and our local schools and community.
CB Cares and the Educational Income Tax Credit (EITC)
A PA tax credit allows businesses to multiply their donation 10 times!
How does it work?
The Educational Improvement Tax Credit (EITC) can be for up to 75% of corporate taxes owed. However, if a business makes a two-year commitment at the same funding level the credit is 90% of taxes owed.
For example, every year ABC Corporation donates $1,000 to CB Cares. They commit to donating $20,000 for two years under the EITC program. The net cost after the tax credit is $2,000 ($1,000 for each year). The business has the same out of pocket expense but they have provided CB Cares with an $18,000 additional benefit. In a nutshell, CB Cares is getting the tax money that would have gone to the state.
Donation to CB Cares over 2 years $20,000
Tax credit over 2 years 18,000
Net cost to corporation 2,000
What does the business need to do?
The business needs to complete a one-page application and submit it to the Department of Community and Economic Development (DCED), who is administering the program. DCED will notify the business if the credit has been approved. It should only take a few minutes to fill out the application.
When does the business need to do this?
On July 1st of each year. No earlier, no later. The funds are allocated quickly. The business should fill out the form ahead of time, to allow for any questions that might arise and have it ready to go on July 1.
What happens after DCED approves the credit?
The business needs to make the contribution within 60 days of approval. CB Cares then fills out an acknowledgement form that businesses are required to forward to DCED.
More information is available on the DCED website at www.newpa.com.
Types of PA Corporate Taxes
Typical Corporate taxes Bank & Trust Companies Shares Tax
Corporate Net Income Title Insurance Companies Shares Tax
Capital Stock Franchise Insurance Premium Tax
Mutual Thrift Institutions Tax
In order to take the credit, your business has to pay at least one of the state taxes listed above.
Please take this opportunity and put your tax dollars to work in your community!
Approved Programs
Healthier Community Connections Program- the goal is to offer Central Bucks Schools an opportunity to provide students with programs, assemblies, and presentations that focus on healthy youth development, youth-related issues, youth risk factors, violence prevention, family relations and bonding, community service learning, diversity acceptance, and healthy relationships.
CB Cares provides funding to elementary and secondary schools in the Central Bucks School District to host one program per year
- Elementary schools will receive up to $250 in grant funds to sponsor one program
- Secondary schools will receive up to $250 in grant funds to sponsor one program
The students will not only experience impacting programs, they will also learn about many organizations that need youth involvement and support, thus instilling the value of service learning and civic engagement.
Central Bucks 40 Assets Program- the goal is to ensure healthy choices among our youth by following the nationally-acclaimed Search Institute’s research-based framework that identifies 40 developmental assets (building blocks of healthy development) that young people need from their families and community to pursue healthy life choices and successful personal growth. These Assets fall into eight external and internal categories. External categories include: Support, Empowerment, Boundaries and Expectations, and Constructive Use of Time. Internal categories include: Commitment to Learning, Positive Values, Social Competencies, and Positive Identity. The 40 Assets program has been nationally proven to help reduce drug and alcohol use among youth. Programs included: Boomerang Youth Recognition Award and Reality Rules campaign.
Parent Network - program goal is to provide a safer environment for the children in our community by creating a network of parents and a community dedicated to decreasing high-risk behaviors such as substance abuse. Programs include: Guiding Good Choices, Parent Rap, CBTV, and Backpack Newsflash.
Please take this opportunity and put your tax dollars to work in your community!
Mail your application to be received by July 1st, 2011 to:
Department of Community and Economic Development
The Education Improvement Tax Credit Program
Center for Business Financing – Tax Credit Division
400 North Street, 4th Floor
Commonwealth Keystone Bu9lding
Harrisburg, PA 17120-0225
Telephone: (717) 787-7120
