Educational Improvement Tax Credit Program (EITC)

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.

Businesses or corporations qualify if they pay any of the following taxes:

• Corporate Net Income Tax
• Capital Stock and Franchise Tax
• Bank and Trust Company Shares Tax
• Title Insurance Companies Shares Tax
• Insurance Premiums Tax
• Mutual Thrift Institutions Tax
• Shareholder and Partner personal income tax (S Corps and Partnerships with pass-through tax liability)

Step 2: Apply

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.

Your EITC Contribution Changes Lives

Highest Levels of Academic Success

Your support for day schools and preschools transforms the lives of children, many of whom would not be able to afford the schools without EITC funding.

• Day school gives children the academic tools to thrive, as well as the confidence and caring to get involved in helping the community.
• EITC Research from the Cohen Center at Brandeis University showed that Jewish day school alumni achieve the highest levels of academic success while becoming more likely to identify with Judaism as adults.
• An AVI CHAI Foundation study found that Jewish day school graduates account for 40% of young Jewish leaders.
• Research from Ukeles Associates found that both the children attending Jewish early childhood programs and their parents increased their participation in Jewish life.