The Educational Improvement Tax Credit (EITC) is a Pennsylvania program administered by the Pennsylvania Department of Community & Economic Development (DCED) that gives businesses the opportunity to invest in educating tomorrow’s workforce. EFLM is an approved Education Improvement Organization (EIO) within the program.

​Companies who donate through the EITC contribute to the academic success of students and earn a substantial tax credit in the process. The program was established in 2001 to provide businesses with a tax credit for their donations to nonprofit scholarship or education improvement organizations.
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For more information, see the DCED Business Application Guide, or contact us with questions.

How Are the Tax Credits Used?

Tax credits may be applied against the tax liability of your business for the tax year in which the contribution was made, reducing your tax bill dollar for dollar.

Who Uses the EITC Program?

Over 2,000 companies have benefited from the EITC. Although several large companies participate, most EITC contributors are small businesses, donating smaller sums of money.

How Much Is the Tax Credit?

A one-time donation can earn your business a 75% tax credit, while a two-year commitment results in a 90% tax credit. Your business can receive up to $200,000 in tax credits annually.

How Do I Apply?

Pennsylvania businesses can begin applying for EITC credits through DCED's electronic single application system. The DCED Business Application Guide explains the process of applying. Tax credit applications are processed on a first-come, first-served basis by day submitted. Applications are approved until the amount of available tax credits is exhausted.

What Are the Deadlines?

May 15 – For business applicants who have fulfilled their 2-year commitment and wish to reapply to renew it; or for businesses who are in the middle of their 2-year commitment.

July 1 – All other businesses (C-Corps, S- Corps) and new businesses may apply. Applications are submitted electronically on the DCED website.

Who Qualifies to Use the EITC?

​To qualify for the EITC, your business must be authorized to do business in Pennsylvania and must be subject to one or more 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

• Mutual Thrift Institution Tax

• Insurance Company Law of 1921

• Personal Income Tax of S corporation shareholders or Partnership partners