Educational Improvement Tax Credit (EITC) Program
What is EITC?
Pennsylvania’s Educational Improvement Tax Credit (EITC) program is a way for businesses to enrich educational opportunities for students and earn tax credits by donating to an Educational Improvement Organization. Through EITC, eligible businesses can receive tax credits equal to 75% of their contribution, up to $750,000 per taxable year. The tax credit may be increased to 90% of the contribution if the business agrees to provide the same amount for two consecutive tax years.
Why Donate to PRC?
The Pennsylvania Resources Council has been designated as an Educational Improvement Organization under the EITC program for providing innovative educational programs that enhance the public school curriculum. PRC’s hands-on, interactive programs promote the practical application of earth-friendly lifestyle choices and include topics such as recycling and waste reduction, litter prevention, energy and resource conservation, watershed awareness, stream ecology, and environmental health. All of PRC’s programs are designed to address Pennsylvania’s State Academic Standards for “Environment and Ecology” and “Science and Technology” as well as many other relevant standards across the curriculum.
By contributing to PRC through the EITC program, businesses can receive a tax credits while making a positive impact on both students and the environment. A full overview of the EITC Program and Guidelines can be found here.
Is Your Company Eligible to Give to PRC?
Entities eligible to apply for EITC are operating business firms authorized to do business in the Commonwealth of Pennsylvania that are 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?
Pennsylvania businesses can apply for EITC credits through the PA Department of Community & Economic Development’s electronic single application system which can be accessed by clicking here.
The Business Application Guide explains the process of applying. Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.
- May 15 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 15/16 to renew their 2-year commitment.
- May 15 – Businesses who are in the middle of their 2-year commitment.
- July 1 – All other businesses including Pre-K business applications. Beginning in FY 15/16 business firms may agree to provide the same amount of contribution to a Pre-K scholarship organization for two consecutive years.
For More Information
For more information about making an EITC contribution to PRC, please contact Mario Cimino at 610-353-1555 x221 or email@example.com.