Educational Improvement Tax Credit (EITC) program
EITC is a program offered by the Pennsylvania Department of Community and Economic Development that allows businesses to receive significant tax credits when they contribute to state-qualified educational programming.
The PSO is recognized by the PA Department of Community and Economic Development as an Educational Improvement Organization. Besides being a “stamp of approval” regarding the quality of PSO programs, this designation allows companies to make contributions to the PSO through the EITC program. A high percentage of an EITC donation may be used as a direct tax credit for a variety of state business taxes. Tax credits equal to 75% of its contribution up to a maximum of $750,000 per taxable year. This can be increased to 90% of the contribution, if the business agrees to provide same amount for two consecutive tax years.
Eligibility:
Your company may be eligible to participate in the EITC program if the business is authorized to do business in Pennsylvania and is subject to one or more of the following taxes:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921
How to Apply:
1. Consult with a tax advisor and determine eligibility
2. Fill out online application