Education Improvement Tax Credit
BENEFITS TO YOUR BUSINESS
The EITC Program provides your business with state tax credits of up to 90% of your gift.
Additionally, your business may see a benefit in federal taxes, because the gift is deductible for federal tax purposes.
Businesses receive tax credits for gifts that benefit area schools. These tax credits are for 75% to 90% of the gift, depending on whether the business makes a one-year or two-year commitment to the program.
One-year commitment = 75% tax credit
Two-year commitment = 90% tax credit
The maximum gift your business can make through the EITC program is $200,000 for a two-year commitment ($100,000 per year for up to two years).
Pennsylvania created the EITC Program in 2001. Pennsylvania’s Department of Community and Economic Development (DCED) administers the program.
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
If your business pays any of the following taxes to the Commonwealth of Pennsylvania, you are eligible to apply for EITC tax credits:
Corporate Net Income Tax
Capital Stock Franchise Tax
Bank and Trust Company Share Tax
Title Insurance Companies Share Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax