How EITC Can Benefit Your Business

Participation is easy. You contribute money to state-approved educational programs and then receive Educational Improvement Tax Credits (EITC) from The Pennsylvania Department of Community and Economic Development (DCED), which lower your tax liability.

The EITC provides companies with a 75% tax credit for donations to a non-profit educational improvement organization (EIO). The tax credit increases to 90% if the company commits to making the same donations for two consecutive years.

Tax credits are more attractive than a standard charitable donation as tax credits are utilized AFTER your tax liability is established. In addition to the tax benefits, participating businesses support innovative educational programs Like the ones offered to our community by Literacy Pittsburgh.

Please check out the DCED site to learn more about participating as a business and for a complete list of state-approved Educational Improvement Organizations, including Literacy Pittsburgh.

How to Make EITC Work for You

Step 1: Determine If You Qualify. Businesses or corporations qualify if they pay any of the following taxes:

  • Corporate Net Income Tax
  • Capital Stock and Franchise Tax
  • Bank and Trust Company Shares Tax
  • Title Insurance Companies Shares Tax
  • Insurance Premiums Tax
  • Mutual Thrift Institutions Tax
  • Shareholder and Partner personal income tax (S Corps and Partnerships with pass-through tax liability)

Step 2: Apply!

  • Fill out a simple one-page form.
  • Submit an application to the DCED.

Step 3: Make Literacy Pittsburgh the recipient.

Once approved by DCED, your business must contribute to a qualified organization such as Literacy Pittsburgh within 60 days and send proof of the contribution to DCED within 90 days of the approval. Literacy Pittsburgh will send an acknowledgment letter as proof of your contribution, and you will need to send a copy of this letter to DCED.

Follow this process to start changing the lives of our youngest learners through your tax-advantaged support!

EITC sample

Student Spotlight: Emmanuel
Emmanuel resettled in the United States after fleeing violence in his home country of the Democratic Republic of Congo. His immediate goal upon coming to Pittsburgh was to attend college, but he lacked a high school diploma.
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