Businesses Can Reduce State Tax Liability by Supporting Goodwill
Offered by the Pennsylvania Department of Economic Development (DCED), the Educational Improvement Tax Credit (EITC) Program provides businesses with a 75% tax credit when they contribute to qualified Educational Improvement Organizations such as Goodwill of the Southern Alleghenies.
The tax credit increases to 90% if your business commits to making the same contribution for two consecutive years. A business paying taxes in Pennsylvania can receive up to $750,000 in tax credit annually. Your contribution will enhance the programming experience of students enrolled in qualified programming at Goodwill of the Southern Alleghenies.
Which Businesses Are Eligible?
Businesses that pay the following taxes are eligible:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees Under Section 212 of the Insurance Company Law of 1921
Business Application Timeline for FY18–FY19
- May 14, 2018: Business applicants who have fulfilled their two-year commitment and wish to reapply in FY18–FY19 to renew their two-year commitment.
- May 14, 2018: Businesses in the middle of their two-year commitment.
- July 2, 2018*: All other businesses including Pre-K business applications.
*First-time applications will be accepted beginning July 2, 2018 on a first-come, first-serve basis. Funds are often exhausted the same day or within days. Apply promptly on July 2.
DCED’s Application Process
Your tax professional can assist with the DCED’s simple online Business Application. For those businesses that are approved, the DCED sends approval letters during September or October. Approved corporations must then make their contributions to Goodwill of the Southern Alleghenies within 60 days, and provide proof of the contribution in the form of a written acknowledgement from Goodwill within 90 days of approval letter.