Educational Improvement Tax Credit Program
Pennsylvania business owners can reduce their state tax liability through the Pennsylvania Educational Improvement Tax Credit Program (EITC) and the Opportunity Scholarship Tax Credit Program (OSTC). Your eligible tax credit will help those students in the Erie Catholic School System by awarding those children a scholarship through the STAR Foundation.
Your business can receive tax credits equal to 75% of its contribution up to a maximum of $750,000 per taxable year. This can be increased to 90% of the contribution, if your business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $200,000 annually.
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes will qualify for this tax credit:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921