Applications for Educational Improvement Tax Credit (EITC) Now Open

The Educational Improvement Tax Credit (EITC) awards tax credits to businesses that make approved contributions to Scholarship Organizations (SO), Educational Improvement Organizations (EIO) and/or Pre-K Scholarship Organizations (PKSO).  The EITC is a popular program with taxpayers and serves as an effective means to reduce tax liability while contributing to groups that promote and improve educational opportunities in Pennsylvania.

Applications for EITC opened on May 16, 2016 for businesses that are either: in year two of a two-year commitment; or have completed a two-year commitment in the 2015-2016 fiscal year.  Businesses that meet either condition have until June 30 to submit their application.  Applications received after June 30 do not receive preferential consideration and are processed by submission date.  It is likely that some tax credits such as the SO and EIO may be exhausted by July 1 due to the popularity of the programs.

First-time or new applications for EITC open on July 1, 2016.  Historically, it has been a challenge for new applicants to gain approval for contributions to Education Improvement and Scholarship Organizations due to the high demand for these tax credits.  Applicants now have the option to select alternative tax credits under the Opportunity Scholarship Tax Credit Program (OSTC) if their first choice is unavailable.  Additionally, if any OSTC remains as of January 1, 2017, the tax credits will be transferred to EITC for Scholarship Organizations and Pre-K Scholarship Organizations.

Contact us with questions regarding EITC  and visit the “Our Thoughts On” blog for updates as additional budget details become available.

 

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at contactSD@schneiderdowns.com.

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2019 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

Income Share Agreements - The next step in higher education affordability?
Update: Tax Change to Receiving Advance Payments
When to Buy New Electronics? Now!
Final Regulations on Charitable Contributions When a State or Local Tax Credit is Received
New Standard Mileage Rates for 2019
Form 990-T Fiscal Year 2017 Corporate Filers Blended Tax Rate

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office
Pittsburgh

One PPG Place, Suite 1700
Pittsburgh, PA 15222

contactsd@schneiderdowns.com
p:412.261.3644     f:412.261.4876

Map of Columbus Office
Columbus

65 East State Street, Suite 2000
Columbus, OH 43215

contactsd@schneiderdowns.com
p:614.621.4060     f:614.621.4062