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Pennsylvania’s Educational Improvement Tax Credit program (EITC)

YOUR BUSINESS CAN NOW SUPPORT CAP THROUGH EITC CONTRIBUTIONS

Pennsylvania’s Educational Improvement Tax Credit program (EITC) is a great way to support Lancaster County’s leaders of tomorrow, while also benefitting your business’s bottom line.

What Are The Benefits To CAP?

CAP is an approved Educational Improvement Organization (EIO) and Pre-Kindergarten Scholarship Organization (PKSO).

With the funds we receive through PKSO, we are able to provide scholarships to families with a financial need so their children may receive a high-quality early education experience at CAP.

All EIO funds received go to support Crispus Attucks’ Infamous Unstoppables Drill Team & Drum Squad, an award-winning youth leadership development program where students learn music & dance fundamentals while embracing arts & culture.

What Are The Benefits To My Business?

The EITC program allows businesses to redirect their state tax liability to approved nonprofit organizations. Tax credits equal to 75 percent of its contribution up to a maximum of $750,000 per taxable year. Can be increased to 90 percent of the contribution, if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.

Does My Business Qualify?

Qualifying businesses are those 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 unauthorized, domestic/foreign marine)
  • Mutual Thrift Tax
  • Malt Beverage Tax
  • Surplus Lines Tax

“Two of my children have benefited from the Head Start program, which gave them an incredible headstart (pun intended) in their education.”

–Head Start parent

How Can I Apply?

Visit DCED’s website and download their application guide. Full guidelines are HERE.

Timeline:

  • May 16 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 22/23 to renew their 2-year commitment.
    Note: this date is typically May 15 but has been adjusted this year until the next business day.
  • May 16 – Businesses who are in the middle of their 2-year commitment.
    Note: this date is typically May 15 but has been adjusted this year until the next business day.
  • July 1 – All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment*

*Please note there is a limit on the number of tax credits that will be awarded. Applications will be processed on a first-come, first-served basis and will be approved until available tax credits are exhausted. Because this program is so popular, we strongly advise you to submit as early as possible in the day on July 1, as in the past, available credits have been exhausted on July 1.

Questions?

Please contact Kristy Aurand, Chief Development Officer, at kaurand@caplanc.org or 717.299.7388 x3032.


About the Community Action Partnership (CAP) of Lancaster County

The Community Action Partnership is Lancaster County’s largest anti-poverty organization, helping families move toward economic empowerment. CAP’s service profile interrupts generational poverty with programs that support families and individuals at every age and place in life, in the areas of education and child development, health and nutrition, household stability and safety and empowerment.