What is EITC?

 

EITC (Educational Improvement Tax Credit) was enacted by the Pennsylvania State Legislature in 2003. It provides a tax credit to corporations who make donations to state-approved scholarship organizations that open doors of opportunity.
 

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Why Donate Through EITC?

 

Woodland Hills Foundation is an approved scholarship organization.

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By making a tax deductible donation through the EITC program, not only do you receive a reduction in your tax liability, but your company is making a positive impact in our community by supporting the enriching educational programs in the Woodland Hills School District.

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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.  In effect, it costs businesses a dime to give a dollar.

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What businesses and taxes are eligible?

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:

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• Personal Income Tax

• Capital Stock/Foreign Franchise Tax

• Corporate Net Income Tax

• Bank Shares Tax

• Title Insurance & Trust Company Shares Tax

• Insurance Premium 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

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Application Deadlines

 

Returning businesses: apply online beginning May 15.

New to these programs? Apply online beginning July 1.

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Please note that applications are accepted on a “first come, first served” basis, and EITC in particular runs out of funds quickly, so it is important for new businesses to submit on July 1.

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For more information, click here

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