EITC Information
Educational Improvement Tax Credit (EITC)
Educational Improvement Tax Credit (EITC) The Educational Improvement Tax Credit (EITC) program is a Pennsylvania initiative that enables businesses to invest in their communities by supporting educational programs and scholarships while reducing their tax liability.
For Businesses
Tax Savings: Businesses can receive tax credits of up to 75% for a one-year commitment or 90% for a two-year commitment of the total contribution amount. These credits apply against state taxes such as Corporate Net Income Tax, Capital Stock/Foreign Franchise Tax, or Personal Income Tax (for pass-through entities like LLCs or S-Corps).
Community Impact: Contributions directly support approved educational initiatives, fostering goodwill and enhancing public relations.
Flexibility: Businesses can choose to support K-12 scholarships, pre-K scholarships, or innovative educational programs.
For Schools and Students
Access to Quality Education: Scholarships enable low- and middle-income families to afford private or alternative schooling options that better suit their children’s needs.
Enhanced Programming: Contributions fund innovative and career-focused programs, improving academic outcomes and preparing students for future employment opportunities.
For Communities
Workforce Development: EITC-funded programs often focus on skills like STEM, career readiness, and employability, strengthening the local workforce.
Economic Growth: A better-educated workforce attracts businesses and fosters local economic development.
Social Equity: By addressing educational disparities, the program helps create opportunities for underprivileged families
How it Works
- Eligibility: Businesses operating in Pennsylvania and paying eligible state taxes can participate
- Application Process: Submit an application to the Department of Community and Economic Development (DCED) to receive EITC approval.
- Contribution: Donate to an approved EIO, Scholarship Organization (SO), or Pre-K Scholarship Organization (PKSO).
- Tax Credit: Claim the applicable percentage of your contribution as a tax credit.
Financial Examples
One- Year Commitment:
Contribution Amount: $10,000
Tax Credit: 75% = $7,500
Net Cost to Business: $2,500
Two- Year Commitment:
Contribution Amount: $10,000 per year
Tax Credit: 90% = $9,000 annually
Net Cost to Business: $1,000 per year
How the Foundation
of the Columbia Montour Chamber of Commerce Fits In
The Foundation of the Columbia Montour Chamber of Commerce is an approved Educational Improvement Organization (EIO) under the EITC program. Contributions made to the Foundation directly support innovative educational initiatives in local schools, such as:
Career readiness programs that prepare students for workforce opportunities such as Brighter Financial Futures Literacy Program
STEM education projects like the SEAL Challenge, that equip students with in-demand technical skills.
Leadership development programs that build essential skills for future community leaders such as Student in the Workplace.
By partnering with the Foundation, businesses can ensure their contributions are making a meaningful local impact while benefiting from the generous tax credits offered through EITC.