Pennsylvania Educational Improvement Tax Credit
There's a simple way for Pennsylvania businesses to keep their state tax dollars in Southwestern Pennsylvania--instead of sending them to Harrisburg--to help students receive the kind of education their families believe is best for them.
Frequently Asked Questions:
What is it?
A PA Department of Community and Economic Development (DCED) program that allows your business to EARN TAX CREDIT by REDIRECTING its tax dollars into the Penngift/CCA scholarship fund. Your participation in the program allows more children the opportunity to become Christian leaders.
How Is This Possible?
Enacted in 2001, the Pennsylvania Educational Improvement Tax Credit (EITC) program amended the public school code. Act 4 authorized the award of tax credits to businesses that make contributions of up to $200,000 to scholarship organizations (Penngift). These scholarship organizations then designate funds as tuition assistance to qualified recipient schools like Central Christian Academy. In fact, business donations to the EITC program have created thousands of scholarship dollars for Central Christian Academy students.
How Does It Work?
Businesses may receive EITC tax credits according to the following schedule:
One-year Commitment Two-year Commitment
K-12 70% tax credit *90% tax credit
PreK 100% tax credit on first $10,000
*Existing charitable deductions still apply with this credit, increasing the value of the tax credit.
What is the deadline for application?
Submit a one-page application on July 1 of each year.*
*Applications are approved on a first-come basis by date received, and approved until available tax credits are exhausted. Funds for first-time applicants are usually exhausted 48-72 hours after midnight, July 1
What’s the bottom line?
Tax credits equal to 75% of your contribution up to a maximum of $300,000 per taxable year; can be increased to 90% of your contribution, if your business agrees to provide the same amount for two consecutive tax years.
Is my business eligible?
If you do business in Pennsylvania and pay any of the following corporate taxes, the answer is YES!
Corporate Net Income Tax
Capital Stock Franchise Tax
Bank and Trust Company Shares Tax
Title Insurance Company Shares Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax
Surplus Lines Tax
Subchapter S Corps, Limited Partnerships, and Other Pass-through Organizations (filing PA Forms 25S or 65) are also qualifiying businesses.
Read these business guidelines to verify that your business qualifies.
it's easier than you think!
Review the Desktop Guide for step-by-step instructions.
Determine that you're going to support Central Christian Academy.
3. Register and Login
First time applicants can register and returning businesses can login at the Single Application for Assistance page.
You can also call 610-376-1595 to have a specialist from our professional partner, Penngift Foundation, walk you through the request process. They even have a Certified Public Accountant on staff to help you calculate.
4. Complete the Application
In about two weeks, you will hear from the DCED about your approval.
Once approved, you must make your contribution to Penngift Foundation within 60 days.
Questions? Contact us today!
firstname.lastname@example.org | 724-746-4902