Educational Improvement Tax Credit Program (EITC)
Pennsylvania’s Educational Improvement Tax Credit Program
Through Pennsylvania’s Educational Improvement Tax Credit Program (EITC), eligible companies can receive tax credits for contributions to innovative educational programs, such as La Salle University’s Early Achievement Program (LEAP). Companies can receive tax credits equal to 75% of their contribution (up to $750,000 per taxable year) or up to 90% for two-year charitable commitments, while also helping to enrich the lives of Philadelphia students.
EITC Background
Offered by the Pennsylvania Department of Community and Economic Development (DCED) since 2001, the EITC program allows businesses to receive tax credits when they make financial contributions to approved Educational Improvement Organizations such as La Salle University. Funding from EITC allows La Salle to provide educational opportunities for high performing junior and senior high-school students from Philadelphia to earn college credit, explore career paths, and develop college readiness skills.
For complete details on participation in the EITC program and the approval process through the Pennsylvania Department of Community and Economic Development, please visit their website. Business applicants who have previously participated and wish to re-apply can renew beginning on May 15. First-time applicants can apply beginning on July 1.
La Salle University’s Early Achievement Program (LEAP)
La Salle’s Early Achievement Program (LEAP) gives high-school students the opportunity to earn up to 30 college credits during their junior and senior year of high-school. Through this innovative dual enrollment program, students are able to earn dual credit for their college courses to meet the requirements for their high-school degree. Enrolled in intensive small courses designed to provide students with individualized attention, students have access to university-level experiences, as well as a customized program of college preparation and career discernment in areas of specific interest. Students leave these programs with not only college credit but also the confidence to know that they can succeed at the university level.
EITC Eligibility
Companies authorized to do business in Pennsylvania who are subject to one or more of the following taxes are eligible to participate:
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
EITC Application
Businesses must be approved before donating. Business guidelines and application information are available on Pennsylvania’s Department of Community and Economic Development website. All applications must be completed and submitted online. Paper applications are not accepted.
Applications for tax credits will be accepted beginning on May 15 for applicants who are in the middle of a 2-year commitment or for those who are reapplying after finishing a 2-year commitment. Applications for all others will be accepted beginning on July 1. Funding for this program is limited, so it is important to apply as early as possible.
Tax Credits & Approval
Once the Commonwealth approves your application, you must make a contribution directly to La Salle University within 60 days. There is a yearly statewide cap and tax credits are awarded on a first-come, first-served basis. Tax credits are applied against the tax liability of your business for the tax year in which the contribution was made.
Important Steps
- Determine the amount of state corporate taxes that your company pays.
- If your company has participated in the EITC program before, applications are accepted beginning May 15.
- If your company is participating in the EITC program for the first time, you can apply online beginning July 1. Applications are approved on a first-come, first-served basis by date received. This program is popular and only so many businesses can participate, so please submit your application as early as possible.
- The business owner is given written notification from the Department of Community and Economic Development that their business is approved for tax credits. This can take approximately 30-90 days.
- When you receive the approval letter from DCED, make your contribution to La Salle University within 60 days.
- La Salle University will mail you an acknowledgement letter and receipt for the amount of your contribution that you must send to DCED within 90 days of the approval letter.
If you have any questions, or would like to learn more about the EITC program and how it benefits La Salle University, please contact Dominic Vesper, ’20, Assistant Director of Development at 215.951.1242 or vesperd1@lasalle.edu.