Educational Improvement Tax Credit
The Pennsylvania Department of Community and Economic Development awards businesses with tax credits for making charitable contributions to an education improvement organization such as Big Brothers Big Sisters of the Laurel Region. Businesses can get a tax credit of up to $200,000 on their Pennsylvania corporate tax liability.
How does it work?
A tax credit equal to 75% of the total charitable contribution may be granted to a business providing proof of a donation during one taxable year. A tax credit of 90% of the total contribution may be granted if the business provides written commitment to contribute the same amount for two consecutive years.
How does BBBSLR benefit from your donation?
Big Brothers Big Sisters of the Laurel Region is recognized as an “Educational Improvement Organization” that enhances both the curriculum and the academic environment within our schools. Contributions through the EITC program go directly to our School-Based Mentoring Programs where our mentors support improvements in academic performance and social skills of the elementary students.
How do I apply?
Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system.
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.
Which businesses are eligible?
To be eligible for EITC, a business must be authorized to do business in Pennsylvania and subject to one or more of the following taxes: Corporate Net Income Tax, Capital Stock Franchise Tax, Bank and Trust Company Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax, or Mutual Thrift Institution Tax. For more information, visit the Business Guidelines.
When is the deadline for applications?
The PA Department of Community and Economic Development begins processing applications on July 1 of each year, but tax credits are awarded on a first-come first-serve basis. And all available EITC funds are typically exhausted by early autumn of each year. We urge all businesses applying for EITC to do so on July 1 at dced.pa.gov
Do I have to reapply each year?
Applications for businesses that are re-applying for another year (or two) of tax credits, should begin applying May 15th. Applications for renewal will be processed first.
What happens once my business is approved?
You will have 60 days to make your contribution to Big Brothers Big Sisters of the Laurel Region. We then submit proof of your contribution to you for submittal to the PA Department of Community and Economic Development. Your tax credit is effective the same taxable year in which the contribution was made.