Educational Improvement Tax Credit Programs

The Educational Improvement Tax Credit Programs provide a tax credit against the state corporate income tax liability for contributions to Scholarship Organizations (like The Children's Scholarship Fund of Pennsylvania) which provide scholarships to eligible children attending private and faith-based schools.   A business may claim a tax credit worth 75% of its contribution for the K-12 EITC program and EITC 2.0 - (OSTC) program.  Alternatively, if the business commits to two consecutive annual contributions, it may claim a tax credit worth 90% of its contribution. In either case, the maximum tax credit for a company is $750,000 in each year that a donation is made.    

 $263 Million is set aside for the K through 12 scholarship program.

 $20.5  Million is set aside for Pre-Kindergarten EITC program.  

 $65 Million is set aside for Opportunity Scholarship program.    

The Pre-Kindergarten program offers a 1 or 2 year commitment.  Businesses will receive a 100% credit for the first $10,000, and up to a 90% credit on the remaining amount of the contribution for either the 1 or 2 year commitment. Businesses can apply for credits up to a $200,000 for the Pre-Kindergarten program.  

Educational Improvement Tax Credits are awarded to companies on a first-come, first-served basis (by the day) until the cap is reached.              

The Educational Improvement Tax Credit  (EITC) program allows businesses paying certain taxes to redirect there tax dollars and support of schools in their local community.   Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes:  

• 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