Pennsylvania Tax Credit Programs

Support Pittsburgh Area Community Schools (PACS) Through PA Tax Credit Programs

Qualified businesses and individuals can support the mission of Pittsburgh Area Community Schools (PACS) through Pennsylvania’s Educational Improvement Tax Credit (EITC) program.

What is the EITC Program?

Through Pennsylvania’s Educational Improvement Tax Credit (EITC) program, qualified businesses and individuals can make donations to PACS and receive tax credits equal to a percentage of their contribution.

PACS is an approved Educational Improvement Organization (EIO) in the EITC program. Donations made to PACS through the EIO program help us provide vital community-based services to students in the Greater Pittsburgh region, ensuring they have access to resources that support their academic and personal success.

What kind of Tax Credit Can I Expect?

Donors can receive tax credits equal to 75% of their contribution, up to a maximum of $750,000 per taxable year. If the donor commits to making the same donation for two consecutive years, the tax credit increases to 90% of the contribution.

Who is Eligible to Participate in the Tax Credit Program?

Businesses authorized to conduct business in Pennsylvania and subject to one or more of the following taxes may be eligible for the EITC program:

  • Personal Income Tax

  • Corporate Net Income Tax

  • Capital Stock / Foreign Franchise Tax

  • Bank Shares Tax

  • Title Insurance & Trust Company Shares Tax

  • Insurance Premiums Tax*

  • Mutual Thrift Institution Tax

  • Malt Beverage Tax

  • Retaliatory Fees under Section 212 of the Insurance Company Law of 1921
    *excluding surplus lines, unauthorized, domestic/foreign marine

The Pennsylvania Department of Community and Economic Development (DCED) determines the eligibility of businesses and educational improvement organizations.

Businesses Often Eligible to Participate:

  • S Corporations

  • C Corporations

  • General Partnerships

  • Limited Partnerships

  • Limited Liability Companies (LLCs)

How Do I Apply to be a Donor?

Businesses can participate in the EITC program through two methods:

1. Applying Directly Through the State

Eligible businesses can complete an online application for tax credits on the Pennsylvania Department of Community and Economic Development’s (DCED) website.

  • First-time applicants can apply starting on July 1.

  • Renewing applicants may reapply on May 15.

  • Approval is granted on a first-come, first-served basis.

  • Once approved, businesses must make their donation within 60 days and provide proof of the contribution.

PACS will provide all EITC donors with an acknowledgment letter for this purpose, and reporting will be made to the PA DCED.

2. Applying Through a Special Purpose Entity (SPE)

Businesses can also apply for credits by donating through a Special Purpose Entity (SPE). Donors enter into a joinder agreement with a qualifying SPE and remit their donation to the SPE, which then forwards the funds to PACS.

Individuals Can Also Participate!

Individuals who work for or own a for-profit company in Pennsylvania, or who file taxes jointly with a spouse who does, may be eligible to donate through an SPE and receive EITC tax credits.

Please consult your tax advisor regarding your specific tax status.

What are the Differences Between Applying Directly Through the State vs. Working With an SPE?

  • Applying through the Pennsylvania DCED requires donors to adhere to the state’s deadlines (Mid-May or early July) and complete their contributions within 60 days of approval.

  • Applying through an SPE offers more flexibility with timing but requires a two-year minimum commitment. Tax credits cannot exceed your tax liability, as they cannot be carried over.

  • Individuals can only contribute through an SPE under the EITC program.

For More Information

For questions about supporting PACS through the EITC program, please contact:
Julie Tarle, Director for Strategic Advancement
jtarle@pghareacs.org
(412) 999-3393

Pittsburgh Area Community Schools (PACS) appreciates your support through the Educational Improvement Tax Credit program. Your contributions directly help students and families in our communities by ensuring they have access to the resources and support they need to succeed.

Always consult your tax advisor when making decisions that have tax implications.