EITC

What is the Educational Improvement Tax Credit (EITC) program?
The EITC program provides tax credits for approved businesses that may be applied against the businesses tax liability for the tax year in which the contribution was made.

• 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 do I apply?
Eligible businesses can begin applying for EITC credits through DCED’s electronic single application system. The business application guide explains the process CLICK HERE. Tax credit applications are processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.

How does it work?
Once a business has been approved for EITC giving and makes an eligible donation within 90 days, they receive tax credits equal to 75% of their contribution (up to a maximum of $750,000 per taxable year). The credit can be increased to 90% of the contribution if the business agrees to provide the same amount for two consecutive tax years at the time of the initial application.

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