Educational Improvement Tax Credit
Make your tax dollars work for The Lotus School
The Educational Improvement Tax Credit (EITC) program allows qualified businesses to fulfill their state tax burden while supporting the financial aid budget.
Through this program, businesses can receive a 75% state tax credit or a 90% state tax credit for donations. In addition, business owners can claim a charitable deduction for the difference between the tax credit amount and the gift. For example, if you donate $5,000 to The Lotus School each year for two years, you will receive a tax credit of $4,500 per year, plus the ability to claim $500 as a charitable deduction. You can donate any amount up to $750,000.
What is EITC?
EITC provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization. The tax credit increases to 90% if the company commits to making the same donations for two consecutive years. A business paying taxes in Pennsylvania can receive up to $300,000 in tax credits annually. EITC provides low-income children and families with much needed tuition assistance.
Am I eligible?
If your business is authorized to operate in Pennsylvania and pays one of the following taxes, you can register to be eligible for the Pennsylvania EITC program.
- 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 Fees under section 212 of the Insurance Company Law of 1921
How can my business register?
The one-page application is now available online from the Pennsylvania Department of Community and Economic Development (DCED). The website provides further information about the program as well as the application form (EITC Business Guidelines). Additionally, you can call the DCED at 717.787.7120 for a copy of the application.
Who do I contact with questions?
At The Lotus School, contact Steffi Eger at 484.312.0011 or at firstname.lastname@example.org.
At the Department of Community and Economic Development, call 717.787.7120 or find more information online at https://dced.pa.gov/programs/educational-improvement-tax-credit-program-eitc/
Important additional information:
Once a business is eligible, the business has 60 days to make its contribution to The Lotus School.
An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter.
Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and are not refundable nor transferable.
Use the calculator below to see an example of the credit numbers: