Education Improvement Tax Credit (EITC)
The EITC program enables Pennsylvanian businesses to directly invest in the education of our youth through scholarships and supporting innovative educational practices.
What is EITC?
Enacted by the Pennsylvania Legislature in 2001, a business firm will be approved for a tax credit equal to 75% of its contributions to listed organizations, up to a maximum of $750,000 per taxable year. The tax credit may be increased to 90% of the contributions made, up to a maximum of $750,000 per taxable year, if the business firm agrees at the time of application to provide the same amount of contribution for two consecutive tax years. To ensure the receipt and retention of the 90% tax credit, the business firm must make the same amount of contribution in each of the two consecutive tax years. Applications for tax credits for program fiscal year 2018-19 (July 1, 2018 through June 30, 2019) will be accepted beginning July 2, 2018. Tax credit applications will be processed on a first-come-first-served basis by submission date. All applications received on a specific day will be processed on a random basis prior to acceptance of the next day's applications. Applications will be approved until the amount of available tax credits is exhausted.
Administered by the PA Department of Community and Economic Development (DCED), the EITC program supports:
- Educational Improvement Organizations (EIO) that fund innovative projects in public schools;
- Scholarship Organizations (SO) that award scholarships to children across PA to assist them in attending the schools of their choice; and
- Opportunity Scholarship Organizations (OSTC) that grant scholarships to students residing within the boundaries of lowest-achieving 15% of Pennsylvania schools, providing them the opportunity to attend selective secondary schools.
EITC at RBCS
The Byerschool Foundation is an eligible Educational Improvement Organization, Scholarship Organization, and Opportunity Scholarship Organization. Money to its educational improvement organization goes to support the Russell Byers Charter School innovative academic model, Expeditionary Learning. Money to its scholarship organization goes to support charter school students who continue on to independent schools and whose families' taxable household income is less than $75,000, plus $15,000 for each dependent member of the household. Funds to its opportunity scholarship organization provide scholarships to charter school students who continue on to independent schools, reside within the boundaries of lowest-achieving 15% of Pennsylvania schools, and whose families' taxable household income is less than $75,000,plus $15,000 for each dependent member of the household.
Want to get Involved?
All it takes is these two easy steps:Step 1: Determine your eligibility. If you're interested in EITC, please contact your tax accountant with following information. Businesses are eligible if they are authorized to do business in Pennsylvania and subject to one or more of the following taxes:
- Corporate Net Income Tax and Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Bank Shares Tax
- Title Insurance & Trust Companies Shares Tax
- Insurance Premiums 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
Step 2: Fill out the online application.
- 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. Once your application is submitted, the PA Department of Community and Economic Development will advise you if your application for the EITC program is approved.
For More Information...
If you have any questions about Byerschool Foundation’s EITC programs, contact
Byerschool FoundationFor further details on the corporate tax credit program:
1911 Arch Street
Philadelphia, PA 19103