EITC
Educational Improvement Tax Credit
Established in 2001, the PA Educational Improvement Tax Credit (EITC) program has supported the advancement of education in the state of Pennsylvania. This special program awards tax credits to eligible businesses and special purpose entities (SPEs) who make a donation to a qualified scholarship program.
Participation in this tax credit program makes it possible for us to offer scholarships to families at Nittany Christian School who would not otherwise have the opportunity.
Here is some basic information on the program.
Who can participate?
Businesses and individuals (who are approved SPE members) who pay any of the following PA taxes: personal income tax, corporate net income tax, capital stock franchise tax, bank and trust company shares tax, title insurance companies shares tax, insurance premium tax, and mutual thrift institution tax.
What is the tax benefit?
The contributing business/individual will receive a PA tax credit equal to 90%* of the scholarship donation. The remaining 10% of the donation may then be deducted as a charitable contribution on their state and federal income tax returns, which means that the overall tax reduction can be as high as 94-95% of the donation amount.
*To receive the 90% tax credit the donor must make a 2 year commitment. Donors making a 1 year commitment receive a 75% tax credit.
