Educational Improvement Tax Credits (EITC)
IIn 2001, the PA General Assembly established the EITC program to promote expanded education opportunities for students in the Commonwealth. Each year, the Pennsylvania Department of Community and Economic Development (DCED) sets aside millions of dollars in tax credits through the EITC program allowing eligible Pennsylvania businesses to reduce their state tax liability by making charitable donations to approved nonprofit organizations.
The program was modified in 2014 in a way that now allows individuals to participate and receive the same tax credits as businesses.
The Educational Improvement Tax Credit (EITC), provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization. The tax credit increases to 90% if the company commits to making the same donations for two consecutive years. A business paying taxes in Pennsylvania can receive up to 400,000 in tax credits annually.
The tax credit aspect of the EITC program for individuals is very similar to that of businesses. Individuals may donate up to a maximum of the PA State Income Tax Liability and receive a 75% tax credit or a 90% tax credit for if a commitment is made for two consecutive years.
Any individual who pays PA State Income
tax is eligible for the program. These include
Individuals who work at a for-profit company or organization
Individuals who work for a non-profit organization or the government as long as they who own stock in a publicly traded company. (A stock account can be opened and a single share of stock purchased for a few dollars- so this should not disqualify anyone in this category)
Benefits of EITC Participation
There are three main benefits to your participation in the EITC program.
Since you will receive a tax credit of 90% of your EITC donation, it costs you only a dime to give a dollar. For example if you donate $3000 to RCA via the EITC program it will only cost you $300.
By enrolling and donating your tax dollars to RCA you are dictating to the State of PA how they MUST spend your tax dollars, thereby preventing them for spending them on activities or organizations that are in opposition to your values.
Participation in EITC enables RCA to provide financial aid to families giving children the opportunity to attend that otherwise would not be able to.
These are tax credits NOT deductions. As such they are a dollar for dollar reduction of actual taxes owed…better than a tax deduction!
Enrollment Steps
There are five easy steps to enroll in the EITC program and when you contact the school and we’ll guide you through every step of the process.
Download the Application Form from the link at the bottom of this page, complete it, and send it to RCA. Alternatively call us, and we’ll walk you through this one-page application.
If you are applying as a business, all applications for EITC and OSTC are done online. Call RCA and we’ll help you get this form completed.
Donor, once approved, sends the check to a state approved Scholarship Organization and designates RCA as the recipient of their donation.
The Scholarship Organization will send a receipt to the Donor.
Donor applies EITC tax credit to PA Income tax return reducing their tax liability.
Comments From EITC Participants
Pat & Wendy Stanton
RCA Grandparents
Michael Ferguson
RCA Father
Todd and Claudia Gibson
Former RCA and now Home School Parents
For More Information
There are three resources below that may be helpful. Beyond these, if you have questions or would like help with enrolling, please feel free to contact the school
Email: headmaster@reginacoeliacademy.com
Phone: 215-277-1386
Play the explainer video
Download the EITC Enrollment Form
EITC Calculator