THE EITC PROCESS
Step 1: Choose an Eligible Organization
Select an approved scholarship organization, educational improvement organization, or pre-kindergarten scholarship organization to receive your contribution. These organizations are vetted by the state to ensure that your donation goes toward impactful educational programs and opportunities.
Step 2: Apply for Tax Credits
Submit an application through the Department of Community and Economic Development (DCED). Applications are accepted on a first-come, first-served basis, beginning on July 1st each year. The application process is simple and can be completed online.
Step 3: Make Your Contribution
Once your application is approved, you will receive a notification to proceed with your contribution. Depending on your commitment:
- One-year commitment: Receive a tax credit of up to 75% of the donation amount.
- Two-year commitment: Increase your tax credit to 90% by agreeing to make the same donation for two consecutive years.
Your business can contribute to multiple organizations or choose to support a single cause. The total amount of tax credits your business can receive annually is $750,000.
Step 4: Enjoy the Tax Benefits
After your contribution is made, your business can claim the tax credits when filing state taxes. These credits reduce your tax liability, making your business’s contribution a win-win for both your company and Pennsylvania’s educational system.
Step 5: Watch the Impact
Your contribution helps students across Pennsylvania, particularly those from low- and middle-income families, gain access to scholarships for private schools, specialized programs, and better educational resources. By participating in the EITC program, your business directly contributes to enhancing the state’s educational landscape.