Issue: EITC
Educational Improvement Tax Credit (EITC) |
The Educational Improvement Tax Credit (EITC) program was created to enhance the educational opportunities available to all students in Pennsylvania and focuses on providing scholarships to children in low-income families. The EITC program, which went into effect on July 1, 2001, as Act 4, requires the Department of Revenue to give Pennsylvania businesses tax credits if they make a contribution to a scholarship organization or an educational improvement organization. To qualify for this tax credit, businesses must donate cash, personal property, or services to a scholarship or educational improvement organizations. The amount of tax credit that a business receives is dependent on the type of entity to which they made a donation.
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