Sample Computations for "C" Corporations Participating in the Educational Improvement Tax Credit No Contribution 75% EITC 90% EITC Net Income Before Contribution & CNI Tax $220,000 $220,000 $220,000 EITC Contribution None $10,000 $10,000 Federal Taxable Income Before PA CNI Tax $220,000 $210,000 $210,000 PA CNI Tax @ 9.99% $ 21,978 $20,979 $20,979 Federal Income After PA CNI Tax $198,022 $189,021 $189,021 PA CNI Tax Savings (After Deduction for Contributions) None $999 $999 EITC (PA CNI Tax Savings) None $7,500 $9,000 PA Tax Savings – Total None $8,499 $9,999 Federal Taxable Income $198,022 $196,521 $198,021 Federal Tax $60,479 $59,893 $60,478 Federal Tax Savings None $586 $1 PA Tax Savings – Total Federal Tax Savings Total Tax Savings None None None $8,499 $586 $9,999 $9,999 $1 $10,000 Annual Cash Required to Contribute $10,000 0.0 $915 0.0 Percentage Effective Total Tax Saving when Contributing $10,000 with an EITC 90.85% 100.00%

Content Last Modified on 10/27/2003 3:37:33 PM