EDUCATIONAL IMPROVEMENT TAX CREDIT

Educational Improvement Tax Credit

Watch this 2 minute video to learn how your business can receive a tax credit for investing in early learning opportunities.

                                                                            

 

Children are our future! 

United Way of Lancaster County is committed to ensuring that children in our community have the best chance of success in school and throughout the rest of their lives.  

As part of this commitment, we provide scholarship assistance for Pre-Kindergarten programs to children whose families are in financial need.  

Our scholarship averages $1,500 per child so qualified 3-6 year old children across Lancaster County can attend high-quality pre-kindergarten programs. 

United Way of Lancaster County has been approved as a Pre-Kindergarten Scholarship Organization by the Educational Improvement Tax Credit (EITC) of the Pennsylvania Department of Community and Economic Development (DCED).   

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Why contribute to the Educational Improvement Tax Credit? 

The EITC program awards tax credits to eligible businesses contributing to qualified organizations. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made. 

A business firm may receive a tax credit equal to 100% of the first $10,000 contributed to a Pre-Kindergarten Scholarship Organization (United Way of Lancaster County) during the taxable year and may receive a tax credit equal to 90% of any additional amount contributed during the taxable year, up to a maximum of $200,000 of tax credits per taxable year. 

Diagram Description automatically generatedIt’s a triple win!  
  1. Local companies win by reducing their taxes and investing in the Lancaster community and future workforce 

  1. Parents win because they are more productive employees knowing that their children are in high quality early care and education programs 

  1. Children win because they are in nurturing programs designed to prepare them to enter school ready to learn 

 

Why choose United Way? 

Although there are many organizations that a business can choose to contribute to with EITC, other organizations are tied to their own programs. Scholarship money can only be spent on their specific pre-K programs.  

Money given to United Way of Lancaster County makes the whole county stronger. We invest scholarship funds to a variety of pre-K programs throughout Lancaster County.  

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Who is eligible? 

Businesses 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 

Timeline: 

May 17 – Business applicants who have fulfilled their 2-year commitment and wish to reapply next fiscal year to renew their 2-year commitment. 

May 17 – Businesses who are in the middle of their 2-year commitment. 

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. 

How your business can apply: 

Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system.  

The business guidelines (click here for a PowerPoint registration tutorial) explains the process of applying. Applications will be approved on a first-come, first serve basis until the amount of available tax credits is exhausted.  

This is a quick and effective way to save money and support the children of Lancaster County! 

Learn More about funding and terms on the PA state website.

Register Now