Hatboro - Educational Improvement Tax Credit (EITC)
Hatboro - Educational Improvement Tax Credits (EITC) a revitalization tool for local libraries.
Hatboro Borough, Montgomery County, PA
The Union Library of Hatboro, founded in 1755, was underfunded and facing a financial crisis.
We explored creative ways to raise funds for the Library, an annual funding source being most desirable.
Hatboro's largest corporation, Hatboro Federal Savings, a $500 million dollar bank, had been funding the Hatboro Horsham Education Foundation for nearly five years with $220,000 annually in EITC tax credits. The total amount of these funds were directed to one school district while the bank's territory covered two. The Union Library of Hatboro also sits directly next to the Bank's headquarters on Main Street in Hatboro.
Educational Improvement Tax Credits are an innovative revitalization/tax tool created by the State of Pennsylvania to fund educational programs outside of normal school taxes. The State allows Pennsylvania companies to redirect State Taxes to K-12 accredited educational programs in lieu of sending taxes to the State. The EITC tax credits may be assigned locally to school district education foundations or other 501c3 educational institutions.
We worked closely with Hatboro Federal Savings and suggested expanding the reach of their EITC funds to assist more than one educational institution. Next, we worked with the State Representative's office to legally set up the Library to become a recipient, a process that requires State approval not only for the donors, but the recipients as well.
After hand walking the application to the State Rep's office we followed up later to check on the approval process as the deadline was quickly approaching. From the State Rep's office with the help of his legislative aide we called Harrisburg and the Rep who happened to be there that day to find out the status of the application. The State Rep visited the EITC office to find the Library's application was sitting, stacked on the desk of a former employee.
The Library application was stamped and approved that day.
$115,000 in EITC Funding secured for the Union Library of Hatboro over the last three years.
The Union Library currently uses the EITC funds for their summer youth reading program.
With Hatboro Federal we devised a more diversified dispersion of their $220,000 EITC tax funds. The funds are now to be divided $35,000 annually to the Union Library of Hatboro, $60,000 to Centennial School District and $125,000 to the Hatboro Horsham School District.