FAQ

Q: What businesses qualify to participate in the EITC?

A: Any business: C-Corporations, Subchapter-S Corporations, Partnerships, Sole Proprietorships, Limited Liability Companies that pay any of the following Pennsylvania 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 Institutions Tax
  • Personal Income Tax Liability for S-Corp Shareholders

Q: Why are tax credits more attractive than a standard charitable donation?
A: While deductions reduce your amount of taxable income, tax credits reduce your actual tax bill, dollar-for-dollar. Tax credits are utilized AFTER your tax liability is established.

Q: How much of a tax credit can I get for my business through EITC?
A: The tax credit (against taxes owed) is equal to 75% of the contribution for one year. However, if a company makes the same commitment for two consecutive years, the credit becomes 90% for each year. Eligible companies may take up to $300,000 in tax credits per year. In addition, full charitable deductions still apply with this contribution (including federal tax filings), increasing the value of the tax credit.

Q: Is it a complicated process for businesses to receive the tax credit?
A: Not at all.

  • The application is just one page, which you submit to the PA Department of Community & Economic Development.
  • Based on available funding and presuming the company does not owe back taxes, DCED will send an approval letter to the applicant.
  • Upon approval from DCED, the company then has 60 days to make its donation designated for the Japan-America Society of Pennsylvania through:
Japan-America Society of Pennsylvania

2735 Mosside Blvd, Suite 402

Monroeville, PA 15146

Acknowledgement from the JASP will be provided to business, which then has 90 days to send proof of its donation to DCED.



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