Education Improvement Tax Credit (EITC)

Act 4 of 2001 (the Act) amends the Public School Code to provide for the establishment of the Education Improvement Tax Credit (EITC) to be administered by the Department of Community and Economic Development (DCED). Act 4 authorizes the award of tax credits to businesses that make contributions to scholarship organizations and/or educational improvement organizations contained on a list published by the Department. Act 48 of 2005 authorizes the award of $47 million in tax credits to businesses that make contributions to Scholarship Organizations or Educational Improvement Organizations.

Find out more about EITC.

EITC is a WIN-WIN!!

A business will be approved for a tax credit equal to 75% of its contribution(s), up to a maximum of $200,000 per taxable year. The tax credit may be increased to 90% of the contribution(s) made, up to a maximum of $200,000 per taxable year, if the business agrees to provide the same amount of contribution for two consecutive tax years.

Wouldn't you like the opportunity to choose how your state tax dollars are spent?

Click here to see a sample of how EITC works

Click here to see fact sheet.

Eligible Businesses

Businesses Eligible to apply for the Educational Improvement Tax Credit are businesses authorized to do business in the Commonwealth of Pennsylvania that are subject to 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 Institutions Tax

New Applications will be accepted by the Department of Community and Economic Development beginning July 2, 2007 for the program fiscal year 2007-2008. There are a limited number of tax credits available!