Educational Improvement Tax Credit (EITC) Program

Educational Improvement Tax Credit (EITC) Program is sponsored by Pennsylvania Department of Community & Economic Development. This program provides tax credits to eligible businesses that contribute to K-12 tuition assistance organizations. While primarily for scholarships, the funds ultimately benefit Catholic schools by increasing enrollment and providing financial resources.

Educational Improvement Tax Credit Program (EITC) - PA Dept. of Community & Economic Development Educational Improvement Tax Credit Program (EITC) Upcoming School Year 25/26 EITC/OSTC Reporting Requirements: Identify whether a scholarship recipient was an eligible student with a disability. Along with the grade level of the recipient (K-8) or (9-12).

Dollar amount of each individual scholarship award Name of each scholarship recipients school district of residence. Name of the school that each recipient attended. Reporting begins with the 25/26 school year.

Renewal reports due November 2026. Format to be provided by DCED. 2024-2025 EITC Business Participants Tax credits to eligible businesses contributing to a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization.

View a list of Approved Organizations: Scholarship Organizations (SO) Educational Improvement Organizations (EIO) Pre-Kindergarten Scholarship Organizations (PKSO) Business Application Timeline Tax credits to eligible businesses contributing to Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization.

May 15-June 30: Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 25/26 to renew their 2-year commitment. May 15-June 30: Businesses who are in the middle of their 2-year commitment. July 1: All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment.

If you did not submit the tax clearance form during the application process, you can still do so through the PA Department of Revenue website. Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc., can now apply the same day as C-Corporations. Applications must be submitted electronically using the Enterprise eGrants System.

See the business application guide in the box above. For Parents, Students and Scholarship Organizations and/or Pre-K Scholarship Organizations Students are eligible to receive a scholarship if their household’s annual income is no greater than $122,322 plus $21,531 for each dependent member of the household.

Learn about the Opportunity Scholarship Tax Credit Program (OSTC) Business Application Guide Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.

Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes: Capital Stock/Foreign Franchise Tax Title Insurance & Trust Company Shares Tax Insurance Premium Tax (excluding unauthorized, domestic/foreign marine) Tax credits equal to 75 percent of its contribution up to a maximum of $750,000 per taxable year.

Can be increased to 90 percent of the contribution, if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.

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.

Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and are not refundable or transferable, except for an approved election by a pass-through entity to apply any unused tax credits to the tax liability of the owners in the taxable year immediately following the year in which the contribution is made.

Pennsylvania businesses can begin applying for EITC credits through the Enterprise eGrants System. DCED will no longer require applicants to mail the signed signature page . The business application guide explains the process of applying.

Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.

Applicants interested in applying as an Educational Improvement Organization, Scholarship Organization or Pre-K Organization can apply at DCED Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120: 717. 787. 7120 or RA-EITC@pa.

gov . Do not use the Enterprise eGrants System. The application process is listed below.

Educational Improvement Tax Credit Program (EITC) Frequently Asked Questions Organizational Guidelines (.

PDF) Scholarship Organization & Educational Improvement Organization Pre-Kindergarten Scholarship Organization List of Approved Organizations Scholarship Organizations Educational Improvement Organizations Pre-Kindergarten Scholarship Organizations Multimodal Transportation Fund State Facility Closure Transition Program (SFCTP) Public School Facility Improvement Grant Program Strategic Management Planning Program (STMP)