The Educational Improvement Tax Credit (EITC) Program

What is the Educational Improvement Tax Credit (EITC) program?

The EITC program provides tax credits for approved businesses that may be applied against the businesses tax liability for the tax year in which the contribution was made.

Who qualifies?

Companies authorized to do business in Pennsylvania that are subject to one or more of the following taxes may apply:

  • Personal Income Tax
  • Capital Stock/Foreign Franchise Tax
  • Corporate Net Income Tax
  • Bank Shares Tax
  • Title Insurance & Trust Company Shares Tax
  • Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
  • Mutual Thrift Tax
  • Malt Beverage Tax
  • Retaliatory Fees under section 212 of the Insurance Company Law of 1921

How do I apply?

Eligible businesses can begin applying for EITC credits through DCED’s electronic single application system. The business application guide explains the process. Tax credit applications are processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.

How does it work?

Once a business has been approved for EITC giving and makes an eligible donation within 90 days, they receive tax credits equal to 75% of their contribution (up to a maximum of $750,000 per taxable year). The credit can be increased to 90% of the contribution if the business agrees to provide the same amount for two consecutive tax years at the time of the initial application.

How does EITC credit support PAFA?

EITC gifts support our After-School Studio Art Program for High School Students and our School Visit Program.

The After-School Studio Art Program for High School Students provides free college-level fine arts instruction and hands-on studio experience to approximately 300 Philadelphia high school students annually. Over two 14-week semesters, participants in the After-School Program may choose to enroll in one or more of the following classes: Oil Painting, Foundation Drawing, Life Drawing, and Introduction to Illustration. Each class has a set of learning goals around which students are taught a baseline of formal skills such as line, color, brushwork and composition. The coursework also incorporates basic liberal arts skills such as art history and anatomy, and instructors apply visual learning skills such as spatial relationships, observation and perspective to other disciplines such as math, music, and sports.

Each year PAFA’s School Visit Program serves approximately 12,000 Pre-K-12 students. Led by art educators, students view works in PAFA’s galleries, linking art to core curriculum subjects such as language arts, science, and history. These interactive tours feature multiple activities, including writing, art-making, comparing and contrasting, and practicing Visual Thinking Strategies that are crucial for life success in the 21st century. PAFA provides free bus transportation and reduced admission for approximately 60% of participating schools.

PAFA recently expanded its tour program to give middle and high school students the opportunity to train with museum educators to become Student Docents, leading the interactive tours of PAFA’s galleries for their classmates. Student Docents gain important skills, such as confidence in public speaking, and their peers practice visual thinking strategies during their gallery tours. The program is free for all participants, and PAFA provides free bus transportation for all Student Docent training, and for all gallery tours. This builds on PAFA’s existing tours, but allows for a unique exchange of ideas between students that would not occur with teacher or museum educator acting as the guide

For more information on the EITC program, visit their website or contact Kate Virdone, Director of Corporate Partnerships at PAFA at 215.391.4127 or kvirdone@pafa.org.


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