Sample Computations for "C" Corporations Participating in the Educational Improvement Tax Credit (K-12)

	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	--	$915	$0
Percentage Effective Total Tax Saving when Contributing $10,000 with an EITC	--	90.85%	100.00%