Educational Improvement Tax Credit (EITC)
Help Our Students Continue to Soar
Here’s how to make your state tax dollars work for Solebury SchoolPennsylvania’s Educational Improvement Tax Credit Program (EITC) allows qualifying businesses to redirect their state taxes from the Commonwealth of Pennsylvania to Solebury School, where they will be put toward financial aid for our students who qualify.* It’s a terrific, nearly cost-free opportunity to make a difference in the lives of our students — nearly half of whom receive some form of financial aid.
What Is EITC?
EITC provides Pennsylvania companies with a 75% tax credit for donations to a non-profit scholarship or “educational improvement organization” (like Solebury School). If your business commits to making the same donation for two consecutive years, your tax credit increases to 90%. By combining this tax credit with federal deductions for charitable gifts, the scholarship donation is virtually cost-free to businesses.
Who Is Eligible?
Pennsylvania businesses that are subject to one or more of the following taxes may be eligible for EITC:
- Personal Income Tax
- Capital Stock / Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Feeds under 212 of the Insurance Company Law 1921
When to Apply?
First-time applicants or applicants for one-year cycles must submit applications on July 3 every year.
Repeat / two-year cycle applicants must submit applications on May 15 each year. This due date applies if you are in your renewal year or if you are beginning a new, two-year cycle.
PLEASE NOTE: Businesses can begin the online application process at any time, but should not hit “submit” until the above due dates.
Ready to Apply?
1. Here are instructions that walk you through the application, step by step.
2. After completing the application on the applicable due date, you may fax or email it. (See below for fax # and email address). Please mail the signature page of the application to the DCED; they must receive it within 15 days of receiving your application via fax or email.
Department of Community and Economic Development
The Educational Improvement Tax Credit Program
Center for Business Financing - Tax Credit Division
400 North Street, 4th Floor
Commonwealth Keystone Building
Harrisburg, PA 17120-0225
3. Next, you’ll receive an approval letter from the DCED. You now have 60 days to write your check to Solebury School with “PA EITC Program” noted on it. Here is the address:
attn: Annual Fund Manager Heather Gaghan
6832 Phillips Mill Road
New Hope, PA 18938
4. Finally, after receiving your check, Solebury School will send you the official acknowledgement and thank you letter. Send the DCED a copy of the thank you letter to confirm that you used your tax credits as promised. You have 90 days following receipt of the initial approval letter to send it to the DCED.
5. Know that your business has made a sound investment in educating the next generation of young minds and workers. Solebury School sincerely appreciates it!
If you have any questions about the EITC program or how to apply, Annual Fund Manager Heather Gaghan will be happy to answer them. Please contact her at firstname.lastname@example.org or at 215.862.5261, ext. 136.
*Students must be residents of Pennsylvania to receive EITC funding.