The Pennsylvania Educational Improvement Tax Credit (EITC) program allows qualifying businesses to receive state tax credits for charitable contributions to approved organizations.
• Business firms authorized in the Commonwealth, subject to taxes such as personal income, capital stock, or corporate net income tax.
• Pass-through entities are eligible, but sole proprietors are not.
• To receive tax credits, businesses must be approved to make contributions to Scholarship Organizations (SO), Educational Improvement Organizations (EIO), or Pre-Kindergarten Scholarship Organizations (PKSO) listed by the Department.
• 75% credit of yearly contributions, up to $750,000.
• Increased to 90% if committed for 2 consecutive years.
• Pass-through entities may make an irrevocable election to pass the credit to the owners.
• Credits not used in the taxable year cannot be sold, assigned, carried forward, or carried back, except with an approved pass-through election.
• May 15: For businesses renewing their 2-year commitment or in the middle of one.
• July 1: For all other businesses, including new applicants.
• Next Deadline: July 1, 2025, for years ending July 1, 2025 through June 30, 2026.
• Lists of qualifying charitable organizations are available on the Department’s website.
• Public information includes the amounts donated and the recipient organizations.
For more details, visit dced.pa.gov.
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