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EITC Provides Educational Enrichment Opportunities

Pennsylvania’s Educational Improvement Tax Credit (EITC) program is a way for businesses to enrich educational opportunities for students and earn tax credits by donating to an approved organization.

Who is eligible to apply for EITC credits?

The EITC program is administered by the PA Department of Community and Economic Development and is open to businesses in Pennsylvania who are subject to a variety of taxes. Eligible businesses can receive tax credits equal to 75% of their contribution, up to $750,000 per taxable year. The tax credit may be increased to 90% of the contribution if the business agrees to provide the same amount for two consecutive tax years. The program gives businesses an alternative avenue to providing community support beyond traditional means of donating.

Who can receive EITC funding?

In Pennsylvania, organizations can be approved to receive EITC funds by meeting criteria to be a Scholarship Organization, an Educational Improvement Organization, or a Pre-Kindergarten Scholarship Organization, or any combination of all three. The EITC program is designed to stimulate giving to innovative educational organizations and to enrich educational opportunities for students.

What are the designation criteria?

  • Scholarship Organization: The organization must be a non-profit that is exempt from federal income tax and provide tuition to eligible students to attend a school located in PA.
  • Educational Improvement Organization: The organization must be a non-profit that is exempt from federal income tax and provide advanced or similar academic programs that are not part of a public school but enhance the curriculum of the school. The program is offered through innovative education instruction that includes but is not limited to internet-based learning programs and before and after school care.
  • Pre-Kindergarten Scholarship Organization: The organization must be a non-profit that is exempt from federal income tax and provide instructional and developmental activities for three-year-old to six-year-old students preparing to enter kindergarten.

What are potential benefits of EITC donations?

Businesses that contribute EITC donations can have a crucial impact to the success of community organizations. EITC donations can provide food and shelter; start or extend programming; and provide childcare. First Keystone Community
Bank is proud to support community organizations by enriching educational opportunities through EITC and other donations.

Donations made to local agencies by First Keystone Community Bank in 2023 include: Brighter Financial Futures (Pennsylvania Council on Financial Literacy) of Columbia County which hosts comprehensive financial programs for students; Berwick and Bloomsburg Area YMCAs which deliver services for Youth Development, Healthy Living and Social Responsibility; and the Danville Area Community Center which provides recreational and social programs for people of all ages; and many other organizations.

First Keystone Community Bank is always proud to support the local communities that we all call home.

For more information about the EITC program, please visit the PA Department of Community & Economic Development website or call First Keystone Community Bank at 570-752-3671, ext. 1180.

Written by Diane C.A. Rosler

Diane is Senior Vice President and Chief Financial Officer for First Keystone Community Bank.

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Posted On:

February 6, 2024

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