What is the Educational Improvement Tax Credit (EITC) program?
This program was created to provide an incentive for charitable giving by Pennsylvania businesses. Your charitable contribution becomes a low-cost gift when you redirect you state business taxes to the participating Educational Improvement Organization of your choice.
- A one-year commitment will earn you a state tax credit of 75% of your contribution. A business that agrees to provide the same amount for two consecutive tax years will earn a credit of 90%.
- The non-credited portion of the gift can be claimed as a charitable contribution for federal tax purposes.
- Businesses may request up to $750,000 in tax credits per year.
- Any Pennsylvania businesses other than a Sole Proprietorship is eligible.
The credit is available to offset:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Insurance Company Law of 1921
- Personal Income Tax of S Corporation Shareholders or Partnership Partners
How does my company apply?
Step 1: Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system.
Step 2: Your business receives a tax credit approval letter from the State.
Step 3: Your business makes its gift to Vetri Community Partnership within 60 days of receiving its tax credit approval letter.
Step 4: Vetri Community Partnership receives the gift, and your business provides proof of the gift to the State within 90 days of receiving the tax credit approval letter.
Step 5: File your business tax returns normally.
For more information on taking advantage of this program, please contact Christin Kwasny, Director of Development, at firstname.lastname@example.org or by calling 267-281-6350.