Pennsylvania’s Educational Improvement Tax Credit Program
Pennsylvania’s Educational Improvement Tax Credit program enables businesses to reduce their state tax liability by earning credits in exchange for a donation to support need-based scholarships. Plymouth Meeting Friends School is an approved scholarship school.
EITC provides companies with a 75% tax credit for donations to approved educational scholarship organizations. The tax credit increases to 90% if a company commits to making the same donation for two consecutive years. A business paying qualifying taxes in PA can receive up to $750,000 in tax credits annually. The state government allocates tax credits for education programs each year on a first-come, first-served basis until the credits run out.
Who is Eligible to Participate?
The EITC program is available to businesses that file as S-Corporations, Partnerships, LLs or C-Corporations. Eligible taxes to which credits can be applied include:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Personal Income Tax of S Corporation shareholders
- Personal Income Tax of partners in general or limited partnerships
How to Participate in EITC
- You or the company you work for complete a single-page online application (a first-time registration and login is required). Information and the application can be found here on the DCED website.
- After submitting the online application, submit the signature page to the DCED via US mail.
- Upon receipt of your approval letter from the DCED, you have 60 calendar days from the date of the letter to make a contribution to PMFS. Please send your check to:
Plymouth Meeting Friends School
2150 Butler Pike
Plymouth Meeting PA 19462
- Upon receipt of your contribution, we will send you an acknowledgment letter. Simply mail a copy of this acknowledgment to the DCED as proof of your contribution within 90 days of the date of your approval letter.
- After receiving proof of the contribution, the DCED notifies the Department of Revenue, which applies the tax credits against the appropriate taxes identified in the application.
Benefits of Participating in EITC
- Reduce your corporate state tax burden
- Take a charitable giving deduction on Federal taxes
- Provide tuition aid for financially in need students!
Since the EITC program was established in 2001, it has accomplished several things:
- Provided an easy way for the business community to be more involved in education
- Provided a lifeline to struggling families who wish to educate their children to a nonpublic school
- Provided the best possible return on investment: A child’s future has been enhanced.
If you have questions about participating in the EITC program, please contact:
Ralph Henninger, PMFS Director of Development