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EITC

Thank you to our Education Improvement Tax Credit (EITC) Program Donors!  EITC Donors also received Parkland Education Foundation Corporate Partner Benefits.

2025-2026 donations

  • American Bank
  • Butz
  • Embassy Bank
  • Friends of Education
  • Neffs National Bank
  • New Tripoli Bank
  • Peoples Security Bank & Trust
  • Weis

Educational Improvement Tax Credit Program – A Guide for the Business Community

A Business Community Guide to Keeping Your Tax Dollars Local

The Educational Improvement Tax Credit (EITC) program allows Pennsylvania businesses to reallocate their state tax liability directly to the Parkland School District Education Foundation. Instead of sending your tax dollars to Harrisburg, you can invest them directly into advanced, student-centric programs right here in the Parkland community—at minimal to no out-of-pocket cost.

Q. What is the difference between a tax credit and a tax deduction?

A. A tax deduction only reduces your taxable income, saving you a fraction of your donation. A tax credit reduces your actual tax liability dollar-for-dollar. The EITC program gives you up to a 90% credit against the Pennsylvania taxes your business already owes, and the remaining 10% may still be eligible for a federal charitable deduction.

Q. What businesses qualify?

A. Any business entity authorized to do business in Pennsylvania that is subject to one or more of the following taxes:

  • Corporate Net Income Tax

  • Bank and Trust Company Shares Tax

  • Title Insurance Companies Shares Tax

  • Insurance Premiums Tax

  • Mutual Thrift Institution Tax

  • Personal Income Tax (for S-Corporation shareholders or Partnership/LLC partners)

Q. How much of a tax credit can my business receive?

A. Tax credits are awarded based on your commitment to the Foundation:

  • 75% Tax Credit for a one-year donation commitment.

  • 90% Tax Credit if your business makes a written commitment to provide the same donation amount for two consecutive years.

Eligible companies may claim up to $750,000 in tax credits per fiscal year.

Q. Can you give me a real-world financial example?

A. Absolutely. Let’s look at how a two-year commitment practically eliminates the out-of-pocket cost:

Step Financial Breakdown
1. Current Tax Liability Business X anticipates owing $50,000 in Pennsylvania state taxes.
2. The EITC Commitment Business X enrolls in a 2-year EITC commitment and redirects $50,000 to the Parkland Foundation.
3. The Tax Credit Applied Because of the 2-year commitment, the business receives a 90% tax credit ($45,000) applied directly to their state tax bill.
4. The Bottom Line Business X pays just $5,000 to the state. The full $50,000 goes to Parkland students, while the real cash outlay for the business is only $5,000.

 

Q. Why should my business participate?

A. Beyond the massive financial benefits, participating in EITC provides incredible local public relations. It showcases your company as a champion of public education. By supporting cutting-edge programs in academics, arts, and athletics, you directly invest in the future workforce and gain the deep appreciation of the community, your clients, and your employees.

How to Apply: The Step-by-Step Process

Because EITC tax credits are limited by the state and distributed on a first-come, first-served basis, timing is critical.

1. Check the Deadlines: May 15 & July 1

  • May 15: Applications open for renewing 2-year applicants.
     
  • July 1: Applications open for all new business applicants. You should apply on day one, as state funds exhaust quickly.

2. Submit Online Application: Via PA DCED
Complete and submit the electronic application through the PA Department of Community and Economic Development (DCED) Single Application portal at dced.pa.gov. Remember to designate the Parkland School District Education Foundation as your chosen Educational Improvement Organization (EIO).

3. Receive Approval: From the State
The DCED will review your application and send your business an official Letter of Approval stating your authorized credit amount.

4. Send Your Contribution: Within 60 Days
Your business must send the monetary contribution to the Parkland School District Education Foundation within 60 days of the date on your DCED approval letter.

5. Submit Acknowledgment: Within 90 Days
The Parkland Foundation will instantly send you a formal written acknowledgment of your gift. Your business must forward this proof of contribution to the DCED within 90 days of your original approval letter.

6. Credit is Applied: Tax Filing
The DCED notifies the PA Department of Revenue, and the tax credit is applied directly to your business tax account as a payment on your annual state tax return.

Q. Who can answer my questions?

A. For specific assistance with making your donation or aligning it with a particular Parkland program, please contact:

Parkland School District Education Foundation

For technical questions regarding the PA DCED online application portal, you can contact the DCED Tax Credit Division directly at (717) 787-7120 or Customer Service at 1-800-379-7448.