Through the PA Educational Improvement Tax Credit (EITC), a business can redirect its tax liability by donating to an eligible Educational Improvement Organization (EIO), like the Abington Educational Foundation (AEF).

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Tax credits are applied against a businesses’ state tax liability for the year in which the donation is made. Businesses that commit for two years get a 90% credit. The credit is 75% of the donation amount for a one-year commitment by the business. EITC for businesses is available on a first come, first served basis starting July 1 and fills up quickly.

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Businesses that pay any of the following taxes are eligible to apply for the EITC program: 

Corporate Net Income Tax
•    Capitol Stock Franchise Tax
•    Bank and Trust Company Shares Tax
•    Title Insurance Companies Shares Tax
•    Insurance Premiums Tax
•    Mutual Thrift Institution Tax
•    Personal Income Tax of S Corporation Shareholders
•    Personal Income Tax of Partnership Partners

 

These taxes are typically paid by Corporations, Partnerships, LLCs, Banks, Insurance Companies, Title Companies and Mutual Thrift Companies. Companies can split their gifts among several EITC-approved nonprofits.

 

 For more details, please visit the Commonwealth of Pennsylvania’s EITC website, or contact AEF’s executive director, Erin Zimmerman, at 215-517-2888 or ezimmerman@aef-pa.org.