PA Tax Credit
2015-2016 EITC Contributors
DNB First Bank
First Niagara Bank
Meridian BankPhilip Rosenau Company, Inc.
The Commonwealth of Pennsylvania’s Educational Improvement Tax Credit (EITC) program allows businesses in the state to earn tax credits for up to 90% of certain taxes owed to the state when they make a donation to a qualified educational organization like Montgomery School. If your company is subject to one or more of the following PA taxes, it is eligible to take advantage of this remarkable opportunity to shape the education of our students. It really is a win-win-win for you, your business and our students!
- Corporate Net Income Tax
- Capital Stock/Foreign Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance and Trust Company Shares Tax
- Insurance Premium Tax
- Mutual Thrift Institutions Tax
- Malt Beverage Tax or Retaliatory Fees under section 212 of the Insurance Company Law of 1921
- Personal Income Tax of S corporation shareholders or partnership partners
Once approved, the tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Business Application Deadline
- May 15 - Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 15/16 to renew their 2-year commitment.
- May 15 - Businesses who are in the middle of their 2-year commitment
- July 1 - All other businesses.
How to Apply
Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic system using the Single Application for Assistance. DCED will no longer require applicants to mail the signed signature page. Pass-through entities, such as S-Corporations, Partnerships, LLC’s, etc., can now apply the same day as C-Corporations.
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.
Tax credits equal to 75% of its contributions up to a maximum of $750,000 per taxable year. It can be increased to 90% of the contribution, if business agrees to provide the same amount for two consecutive tax years.