Educational Improvement Tax Credit Program (EITC)

Tax credits to eligible businesses contributing to a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization.

Uses:

Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.

Funding:

Tax credits equal to 75% of its contribution up to a maximum of $300,000 per taxable year; Can be increased to 90% of the contribution, if business agrees to provide same amount for two consecutive tax years; For contributions to Pre-Kindergarten Scholarship Organizations a business may receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $150,000 annually. No credits remain for 2008-09.

Eligibility:

Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes: 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; or Personal Income Tax of S corporation shareholders or Partnership partners.

Terms:

An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter; Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable.

Where to Apply:

DCED Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120: (717)-787-7120 or tknorr@state.pa.us. Applications are approved on a first-come-first-served basis by date received. EITC Business Guidelines

FAQs:

Organizational applications are accepted all year round. Renewals for 09-10 should be submitted beginning May 1, 2009.

Organizational Guidelines (.pdf):
Scholarship Organization
Educational Improvement Organization
Pre-Kindergarten Scholarship Organization

Lists of Organizations (.pdf):
Scholarship Organization
Educational Improvement Organization
Pre-Kindergarten Scholarship Organization

Purpose of Funding:

• Community Development