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Pennsylvania’s Pre-Kindergarten Tax Credit Program for Businesses
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The Pre-K Tax Credit Program is good for Pennsylvania’s businesses and good for Pennsylvania’s preschool children. And, it could reduce your Pennsylvania tax burden. |
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The Pre-Kindergarten Tax Credit
authorizes the award of $8 million in tax credits to
businesses that make contributions to pre-kindergarten scholarship
organizations. Under the provisions of the Act, 100% of
every dollar up to $10,000 and 90% thereafter up to a
maximum of $100,000 donated to a pre-kindergarten scholarship
organization can count towards one of six Pennsylvania business
taxes, all while helping Pennsylvania preschoolers get off
to a good start to his or her education. |
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The Pre-Kindergarten Tax Credit application is a simple, one-page application which is processed on a first-come-first-serve-basis by the Pennsylvania Department of Community and Economic Development (DCED). Applications will be processed until the amount of available tax credits is exhausted. Any business that is paying any of the following Pennsylvania businesses taxes is eligible: Corporate Net Income Tax; Capital Stock and Franchise Tax; Bank and Trust Company Shares Tax, Insurance Premiums Tax; and the Mutual Thrift Institutions Tax. |
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To receive the tax credit, a business must make a contribution to a pre-kindergarten scholarship organization approved by Pennsylvania’s Department of Community Economic Development, such as the Children’s Village Child Care Center Scholarship Fund. |
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The Fund provides scholarships
to low and moderate income preschool children to attend quality
early care and education programs at Children's Village Child
Care Center in Chinatown and the Parent Infant Center in West
Philadelphia. |
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Last year, the Fund provided 159 scholarships to preschoolers. With your help, we can exceed this number and provide many more scholarships in the coming year. |
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How to apply for the Tax Credit
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First, complete the one page
Pre-Kindergarten Tax-Credit application that can be found
at www.newPA.com.
From the home page click on Funding Program Finder
and then click on Educational Improvement Tax Credit.
Once your application has been approved by the Pennsylvania
Department of Community and Economic Development, make the
fully tax credited donation to the Children's Village Child
Care Center Scholarship Fund. |
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Why supporting early education is good for business
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Investment in early education
pays huge dividends. Quality early education programs prepare
our youngest children for success in school and life, ensuring
Pennsylvania strong families, a responsible citizenry and
an effective and educated workforce. Researchers and economists
have estimated that for every dollar invested in a quality
early education program over $8 is returned to program participants
and society as a whole (The High / Scope Perry Preschool Study
Through Age 27). Business Week has heralded research on how
the best guarantee a child will pursue college is a positive
pre-school experience. Recognizing this link between early
education and economic strength, we hope you consider helping
Children’s Village Child Care Center. |
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