Pennsylvania’s Educational Improvement Tax Credit Program
How It Works For Your Business
The Commonwealth of Pennsylvania offers a unique opportunity for businesses (and qualified individuals) in the state to reduce tax liability by contributing to registered scholarship organizations such as Holy Ghost Prep. Businesses apply through the state to receive up to a 75% tax credit for a 1-year commitment and up to a 90% tax credit for a 2-year donation commitment.
How Businesses Can Apply
The tax credits are available on a first-come, first-served basis starting July 2nd until the tax credit dollars are used up. These tax credit dollars are typically distributed on the first day of application (July 2nd). Businesses are encouraged to apply on July 2nd.
The one-page application is now available on-line from the Pennsylvania Department of Community and Economic Development at www.newPA.com/EITC.
Is my business eligible?
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes can apply for EITC:
- Corporate Net Income Tax
- Capital Stock/Foreign Franchise Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under sec. 212 of the Insurance Company Law of 1921
- Personal Income Tax
- May 15 - June 30 – Business applicants who have fulfilled their 2-year commitment and wish to reapply to renew their 2-year commitment.
- May 15 - June 30 – Businesses who are in the middle of their 2-year commitment.
- July 2 – All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment.
Important Additional Information
Once a business is eligible and received their “approval letter”, the business has sixty (60) days to submit a donation to Holy Ghost Prep. An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter (Holy Ghost will mail an EITC tax letter to your company upon receipt of the gift). Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable.
HGP Contact: Dana Brown, Coordinator of Advancement Services - firstname.lastname@example.org/215-352-6972