Enacted in 2001, the Educational Improvement Tax Credit (EITC) allows Pennsylvania business to receive a tax credit equal to 75% of a contribution up to $300,000 per taxable year. The tax credit increases to 90% if the business agrees to provide the same amount for two consecutive years.
The EITC program has accomplished what many in Pennsylvania have been advocating for years: greater involvement of the business community in education. EITC enables companies to support local non-profit organizations, at minimum cost, instead of sending their tax dollars to Harrisburg. Opera Theater of Pittsburgh is an approved Education Improvement Organization for its middle and high school outreach program.
Who may make EITC gifts?
- C-Corporations (taxed at the corporate level)
- Sole Proprietors
- Limited Liability Companies (LLC’s)
- Subchapter S corporations and other business entities that pay their State business taxes under the personal income tax on PA business income can now fully participate.
What business taxes credits can be claimed against?
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Insurance Company Law of 1921
- Personal Income Tax of S corporation shareholders or Partnership partners
Submitting an online application is easy and takes less than a half-hour of your time:
- Visit www.newpa.com
- Click on the dark blue “Funding & Programs” tab
- Select the “Apply for Funding” option
- Complete the Single Application for Assistance
Applications may be submitted anytime after July 1, 2015; funds are disbursed on a first-come-first-served basis until tax credit funds are exhausted.
Thank you for supporting arts education in inner city middle and high schools!