Local schools and nonprofits this week were relieved to hear that they could soon receive millions of dollars in corporate donations, which had been put on hold in the state’s ongoing budget impasse.
Gov. Tom Wolf’s office confirmed on Thursday that it authorized approvals for Educational Improvement Tax Credits, which awards businesses tax credits if they donate up to $750,000 to a scholarship fund or educational initiative. Both businesses and beneficiaries must apply to participate in the program.
The state Department of Community and Economic Development previously said that the tax credit applications would not be approved until the state passes its final budget. TheBurg reported that the delay was jeopardizing programs at local nonprofits and schools.
Letters notifying organizations of their approvals will be mailed by the end of the week, said J.J. Abbott, Wolf’s press secretary. Businesses have 60 days from the date on the letter to make their donations.
The private funding distributed through EITC is not a state appropriation, and Kirk Hallatt, director of the Harrisburg-based nonprofit Joshua Group, told TheBurg that lawmakers had no good reason to withhold it from beneficiaries. He accused lawmakers of using it as a “political toy” in their budget dispute.
Seventy-nine members of the House Republicans apparently agreed and petitioned Wolf last week to release the funds, according to a press release.
The Salvation Army of Harrisburg was approved to receive funding for its annual Summer Youth Enrichment Program. Kathy Anderson-Martin said Wolf’s decision to authorize EITC approvals makes it easier for them to plan ahead.
“The number of kids we are able to serve is dependent on available resources, so the prospect of donations through the EITC greatly improves our outlook for serving 400 local children next summer,” Anderson-Martin said.
