Educational Improvement Tax Credit Program (EITC)
What is an Educational Improvement Tax Credit?
It is a Pennsylvania tax credit for businesses that make a donation to a scholarship organization. Scholarship organizations will award scholarships to children across Pennsylvania to assist them in attending the schools of their choice.
How to Make EITC Work for You
3 EASY STEPS
Make the Pittsburgh Jewish Educational Improvement Foundation (PJEIF) the Recipient
Once approved by the Department of Community and Economic Development (DCED), your business must contribute to a qualified organization such as the PJEIF within 60 days. You need to send proof of the contribution to DCED within 90 days of the approval. The PJEIF will send an acknowledgement letter as proof of your contribution, and you are required to send a copy of this letter to DCED.
How EITC Benefits Your Business
- Simply put, you contribute money for educational scholarships, and the Educational Improvement Tax Credits (EITC) lower your tax liability. Some companies find that when they add in Federal tax deductions, they save the same amount on taxes that they contributed to scholarships—a zero cost contribution.
- The Pennsylvania Department of Community and Economic Development (DCED) provides state tax credits to eligible businesses that contribute to qualified organizations such as the Pittsburgh Jewish Educational Improvement Foundation.
- Approved businesses receive a percentage of their contribution as a tax credit:
Pre-K Scholarship Organizations
$200,000 Maximum Amount of Tax Credits
• 100% for the first $10,000
• 90% for the remainder of the contribution
• Full amount deductible for Federal tax purposes*
* Full amount is deductible as a charitable contribution, subject to Federal charitable contribution rules.
Give and Receive Through EITC
Who Will You Help?
Through EITC in 2016, businesses made a substantial impact with scholarships:
515 children received K-12 scholarships
234 children received preschool scholarships
scholarships have been awarded since the program began in 2001.
Benefits of Jewish Preschools and Day Schools
• Support for low-income families
• Excellent academic preparation
• Values that emphasize helping others
• Increased participation in Jewish life for both kids and their parents
Join Us to Make an Impact
The Jewish Federation of Greater Pittsburgh supports ten early childhood education programs and three day schools by helping local businesses apply for the tax credits and contribute through the Pittsburgh Jewish Educational Improvement Foundation.
What scholarship organizations can businesses contribute to in order to receive the credit?
Businesses may contribute to qualified charitable organizations that are registered with the Department of Community and Economic Development (DCED). The Jewish Federation of Greater Pittsburgh has created an applicable organization, called the Pittsburgh Jewish Educational Improvement Foundation.
The following corporate donors have generously contributed $3.42 million through the Pennsylvania Educational Improvement Tax Credit (EITC) program in 2015-16. This year, through this initiative, tax credits provided 753 scholarships for children to attend Jewish day schools and pre-kindergarten programs.