Pennsylvania Educational Improvement Tax Credit
Program
What is an Educational Improvement Tax Credit?
It is a tax credit for businesses that make a donation to a scholarship
organization. Scholarship organizations will award scholarships to children
across Pennsylvania to assist them in attending the schools of their choice.
What businesses qualify?
Businesses in Pennsylvania that pay any of the following taxes: Corporate Net Income Tax;
Capital Stock and Franchise Tax; Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; and the Mutual Thrift Institutions Tax.
S Corps and Partnerships are eligible to apply for tax credits based on Shareholder and Partner personal income tax – pass through tax liability.
How much of a tax credit can I get for my business?
• 75% for a 1-year contribution
• 90% for 2-year commitment
Eligible companies or partnerships may take up $400,000 in tax credits per year.
What scholarship organizations can businesses contribute to in order to receive the credit?
Businesses may contribute to qualified charitable organizations that are registered with the Department of Community and Economic Development (DCED). The Jewish Federation of Greater Pittsburgh has created an applicable organization, called the Pittsburgh Jewish Educational Improvement Foundation.
What is the process for businesses to receive the tax credit?
Businesses will apply to DCED for the tax credit. Tax credits are awarded on a first come, first served basis until the funds have been exhausted.
After approval, businesses must make their contributions within 60 days to a listed scholarship organization.
For more information about the Educational Improvement Tax Credit Program, please contact Sally Stein at (412) 992-5243.
Businesses in Pennsylvania that pay any of the following taxes: Corporate Net Income Tax;
Capital Stock and Franchise Tax; Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; and the Mutual Thrift Institutions Tax.
S Corps and Partnerships are eligible to apply for tax credits based on Shareholder and Partner personal income tax – pass through tax liability.
How much of a tax credit can I get for my business?
• 75% for a 1-year contribution
• 90% for 2-year commitment
Eligible companies or partnerships may take up $400,000 in tax credits per year.
What scholarship organizations can businesses contribute to in order to receive the credit?
Businesses may contribute to qualified charitable organizations that are registered with the Department of Community and Economic Development (DCED). The Jewish Federation of Greater Pittsburgh has created an applicable organization, called the Pittsburgh Jewish Educational Improvement Foundation.
What is the process for businesses to receive the tax credit?
Businesses will apply to DCED for the tax credit. Tax credits are awarded on a first come, first served basis until the funds have been exhausted.
After approval, businesses must make their contributions within 60 days to a listed scholarship organization.
For more information about the Educational Improvement Tax Credit Program, please contact Sally Stein at (412) 992-5243.