Pennsylvania’s Educational Improvement Tax Credit Program
Reduce your Pennsylvania business tax liability and support Community College of Philadelphia
Through Pennsylvania’s Educational Improvement Tax Credit Program (EITC), eligible companies can receive tax credits for contributions to innovative educational programs, such as Community College of Philadelphia’s Advance at College Dual Enrollment program. Companies can receive tax credits equal to 75% of their contribution (up to $750,000 per taxable year) or up to 90% for two-year charitable commitments, while also helping enrich lives of Philadelphia students.
What is EITC?
Offered by the Pennsylvania Department of Community and Economic Development (DCED) since 2001, the EITC program allows businesses to receive substantial tax credits when they make financial contributions to approved Educational Improvement Organizations such as Community College of Philadelphia. Funding from EITC allows the College to provide educational opportunities for high school students in Philadelphia to simultaneously earn secondary education credit toward a high school diploma and college credit.
For complete details on participation in the EITC program and the approval process through the Commonwealth of Pennsylvania, Department of Community and Economic Development, visit their website. Business applicants who have previously participated and wish to re-apply can renew beginning May 15; initial applicants can apply beginning July 1
Why choose Community College of Philadelphia?
Community College of Philadelphia is the only public, open admission institution of higher education in Philadelphia, with a mission to provide access to higher education to all who may benefit. Founded in 1964, it is the only community college and the largest public institution of higher education in Philadelphia, playing a vital role in the education of the region’s population. The College’s student population is extremely diverse; of the over 26,000 students taking credit and non-credit courses, approximately 75% are from minority populations, and 62% are female. Approximately 84% of full-time students and 70% of part-time students receive some form of financial aid. More than half of all students are the first generation in their families to attend college; and 49% are low income.
Community College of Philadelphia is proud to be recognized as an EITC-approved Educational Improvement Organization for the Advance at College Dual Enrollment program, which allows students to earn college credit while also fulfilling their high school graduation requirements. By making an investment in Community College of Philadelphia through the EITC program, you can be assured that your taxes are being directed toward educational opportunities that benefit the Philadelphia community.
Advance at College Dual Enrollment
Community College of Philadelphia works closely with the School District of Philadelphia to engage current high school students in higher education, providing an opportunity to simultaneously earn secondary education credit toward a high school diploma and college credit. This “dual enrollment” provides opportunities beyond what is available at students’ home high schools and presents higher education as a possibility for these students.
Exposure to the academic rigor and social environment of postsecondary education is crucial, both to motivate secondary school completion and encourage continued education upon high school graduation. Through this program, Philadelphia’s current high school students are able to take courses at the College while still enrolled in high school. Students simultaneously earn college credit while fulfilling their high school graduation requirements. Engaging students while they are still in high school has a twofold benefit: 1) high school students are able to reduce or eliminate the need for remediation once they enter higher education and earn college credits early, and 2) high school students are able to develop the belief that they belong at college and the confidence that they can succeed there.
To learn more about the Advance at College Dual Enrollment program, visit https://www.ccp.edu/academic-offerings/high-school-student-programs/advance-college.
What businesses are eligible for the EITC program?
Businesses that are authorized to do business in Pennsylvania who are subject to one or more of the following taxes:
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 can my company apply for EITC?
Businesses must be approved before donating. Business guidelines and application information are available on Pennsylvania's Department of Community and Economic Development website. All applications must be completed and submitted online. Paper applications are not accepted.
Applications for tax credits will be accepted by the State beginning May 15th for applicants who are in the middle of a 2-year commitment or reapplying after finishing a 2-year commitment, and beginning July 1st for all others. Funding for this program is limited, so it is imperative to send in applications as early as possible.
How can my company use the tax credits?
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
What happens once my company’s application for tax credits is approved?
Once the state approves the request, the contribution must be made directly to the Community College of Philadelphia Foundation within 60 days. There is a yearly statewide cap and tax credits are awarded on a first-come, first-served basis.
PA Department of Community and Economic Development
Community College of Philadelphia Advance at College Dual Enrollment
FAQ: A Guide for the Business Community
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- Determine the amount of state corporate taxes that your company pays.
- If your company has participated in the program before, applications are accepted beginning May 15.
- If your company is participating for the first time, you can apply online beginning July 1. Applications are approved on a first-come-first-served basis by date received. This program is popular and only so many businesses can participate, so submit your application as early as possible.
- The business owner is given written notification from the Department of Community and Economic Development that their business is approved for tax credit. This can take approximately 30-90 days.
- When you receive written approval from DCED, make your contribution to Community College of Philadelphia Foundation within 60 days. We will mail you an acknowledgement letter and an appropriate receipt that you can send to DCED.
For more information about EITC and further details regarding giving to the Community College of Philadelphia Foundation through EITC, contact Steve Bacher, Corporate and Foundation Relations Officer, at email@example.com or 215.751.8227.