PENNSYLVANIA EDUCATIONAL IMPROVEMENT TAX CREDIT PROGRAM (EITC)
What is an Educational Improvement Tax Credit?
It is a tax credit for businesses that make a donation to a scholarship organization that awards scholarships to assist children in attending the schools of their choice. Since 2001, Community Day School has received $5.7 million through the EITC program, which has provided for 1,000 needs-based scholarships for students in kindergarten through Grade 8.
What businesses qualify?
Businesses in Pennsylvania that pay any of the following taxes:
Corporate Net Income Tax
Capital Stock and Franchise Tax
Bank and Trust Company Shares Tax
Title Insurance Companies Shares Tax
Insurance Premiums Tax
and the Mutual Thrift Institutions Tax
S Corps and Partnerships are eligible to apply for tax credits based on Shareholder and Partner personal income tax.
How much of a tax credit can I get for my business?
75% for a 1-year contribution
90% for 2-year commitment
Eligible companies or partnerships may take up $750,000 in tax credits per year.
What scholarship organizations can businesses contribute to in order to receive the credit?
Businesses may contribute to qualified charitable organizations that are registered with the Department of Community and Economic Development (DCED). The Jewish Federation of Greater Pittsburgh has created an applicable organization, called the Pittsburgh Jewish Educational Improvement Foundation, that benefits CDS. Click here for more information.
What is the process for businesses to receive the tax credit?
Businesses will apply to DCED for the tax credit. Tax credits are awarded on a first come, first served basis until the funds have been exhausted. After approval, businesses must make their contributions within 60 days to a listed scholarship organization.
For more information on EITC, please contact Sally Stein at firstname.lastname@example.org or 412-992-5243.