Educational Improvement Tax Credit (EITC)
What is the EITC program?
The Educational Improvement Tax Credit is a Pennsylvania business tax credit program offered through the Pennsylvania Department of Community and Economic Development that awards tax credits to business firms that make contributions to Scholarship Organizations, Educational Improvement Organizations (EIO), and Pre-Kintergarten Scholarship Organizations (PKSO).
Tax credits are applied against the business's state tax liability for the year in which the donation was made. Any business that pays the following taxes are eligible:
Corporate Net Income Tax
Capital Stock Franchise Tax
Bank & Trust Company Shares Tax
Title Insurance Premiums Tax
Insurance Premiums Tax
Mutual Thrift Institution Tax
Personal Income Tax of S Corporation Shareholders
Personal Income Tax of Partnership Partners
EITC and CPARC
CPARC is pleased to be participating as a Pre-Kindergarten Scholarship Organization (PKSO) of the EITC program. Businesses that participate in the EITC program and direct their funds to CPARC will be helping to provide scholarships to families with children attending our Pre-Kindergarten programs at our Early Education Centers located in Duncannon and Shermans Dale, Perry County.
CPARC's Early Education Centers provide quality programming and are licensed through both the Department of Human Services and the Department of Education. The centers are alligned with the Keystone STARS requirements and the Pennsylvania Early Learning Standards. In addition, our Early Education Centers are inclusive, meaning children with and without developmental disabilities are engaged in learning together.
How Does a Business Benefit?
Your business can receive a tax credit equal to 100 percent of the first $10,000 contributed during the taxable year. A tax credit equal to 90 percent of any additional amount (up to $200,000) contributed during the taxable year is applicable.
Where Can I Get More Information?
Further information, including the PKSO donor application form, may be found at the Pennsylvania Department of Community and Economic Development's EITC webpage by clicking here.
If you would like more information regarding CPARC's Early Education Centers or Scholarship Program, please contact:
CPARC Director of Development