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.

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; or Mutual Thrift Institution Tax

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

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. NOTE: All FY07-08 funds for contributions to Educational Improvement Organizations have been exhausted. Approximately $8.2 million dollars remains available for contributions to Scholarship Organizations and $1.4 million remains available for Pre-Kindergarten Scholarship Organizations. Notification letters have been sent to all businesses that submitted applications prior to September 4, 2007.

Amounts: Tax credits equal to 75% of its contribution up to a maximum of $200,000 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 $100,000 annually.

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.

Guidelines:
EITC Business Guidelines  

Type of Business:
 

Size of Business:
 

Location:
 

Type of Funding:
 

Purpose of Funding:
 

FAQ:

Organizational applications are accepted all year round. Renewals for 08-09 should be submitted beginning April 1, 2008.

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