What is the Educational Improvement Tax Credit (EITC) Program?
EITC is a program that gives tax credits to eligible Pennsylvania businesses and individuals that want to contribute to Boys & Girls Clubs of Western Pennsylvania. Instead of paying taxes, your tax liability is diverted to our organization so that youth can receive excellent educational opportunities towards financial literacy, workforce and career development, and social enterprise.
Individuals who earn more than $200,000 may also apply for and receive tax credits through a Special Purpose Entity by signing a “joinder” agreement. Please e-mail our Advancement team at giving@bgcwpa.org if you are interested in this option.
How can the EITC program benefit you?
- For a two-year commitment, your business will receive a tax credit for 90% of your contribution.
- For a one-year commitment, your business will receive a tax credit for 75% of your contribution.
- The remaining balance of your contribution may be claimed as a charitable donation on your federal tax return.
- Tax credits are awarded up to a maximum of $750,000 per year per program, for a total of $1,500,000.
Who is eligible to participate?
Any Pennsylvania business subject to the following taxes:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Tax Income
- Bank Share Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus unauthorized, domestic/foreign marine
- Mutual Thrift Tax
- Malt Beverage Tax
- Reality fees under section 212 of the Company law of 1921
When can you apply?
Beginning May 17 – For businesses who have fulfilled their 2-year commitment and would like to renew.
Beginning May 17 – For businesses in the middle of a 2-year commitment.
Beginning July 1 – All new businesses applying for the first time.
Please apply early, as tax credits are distributed on a first-come, first-serve basis.
Note: Individuals have a different schedule to apply and sign a joinder agreement than businesses.
Apply in 5 Easy Steps
- To apply, visit the Department of Community & Economic Development or simply contact us to help you through the process. For first time applicants, register your business and login from the Single Application page. Businesses that have already registered can log in to the Single Application page.
- Once Logged in, complete the application and in approximately two weeks you will hear from the DCED about whether you have been approved.
- Once approved, you must select Boys & Girls Clubs of Western Pennsylvania from the Educational Improvement Organization and make your donation within 60 days of the date of the DCED approval letter.
- Boys & Girls Clubs of Western Pennsylvania will send you a written letter of acknowledgement as proof of your contribution, which needs to be sent to DCED within 90 days of the date of the letter.
- For information about the EITC program or for personal assistance, contact the BGCWPA Advancement team at giving@bgcwpa.org.