PA Educational Improvement Tax Credit (EITC) Program
Elizabethtown College is an approved Educational Improvement Organization (EIO) in Pennsylvania's Educational Improvement Tax Credit Program. This program provides companies with a direct tax credit of up to 90% for a two-year commitment toward the amount a business owes in state taxes. The program leaves companies with a much smaller state tax bill while providing educational resources and programming to thousands of students and teachers in our region.
The College's EIO-approved program is Science in Motion (SIM). The SIM program provides teachers and students in public school districts with access to and training on research-quality equipment used for hands-on, inquiry-based lab exercises in the subject areas of biology, biotechnology, biochemistry, chemistry, and environmental education.
How does it work?
Companies receive a 75% tax credit for a one-year commitment and a 90% tax credit for a two-year commitment. Companies then owe state taxes of either 25% or 10%. The process involves:
- Company registers online and submits the Single Application for Assistance form is available at dced.pa.gov. If interested in supporting Elizabethtown College as an Educational Improvement Organization (EIO), the company notes this under the EITC Program Commitement Slections portion of the electronic form.
- Company receives approval from DCED and has 60 days to make their donation to Elizabethtown College.
- Elizabethtown College will provide an official receipt to the company within a week of receiving the contribution.
- Within 90 days, the company submits the proof of contribution receipt letter from Elizabethtown College to the DCED to show it has fulfilled the commitment.
Is participation time consuming and what state taxes apply?
Your business is eligible to participate if it pays any 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 Institutions Tax.
For more information
For specific information on how this program can benefit your business, please contact your accountant and/or financial advisor.
To learn more about Elizabethtown College's EIO programs, please contact Lesley Finney, Executive Director of Foundation & Government Relations, at 717-361-1445.