If you are a business in PA, you might consider a contribution to an approved Educational Improvement Organizations. If you are a qualified business, you can received a PA tax credit of 75% of your contribution (90% if same contribution for two years).
You need to make sure you meet the requirements (i.e. provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter) and meet the timeline (usually around May-June).
This is more effective charitable contribution to reduce your PA taxes than a general charitable contribution itemized at the Federal level. You can see the chart below from Friends of Education (you can sign up for its communications, timeline for application – deadline June, or request more information on EITC)
| Standard gift | EITC gift | |
| Contribution | ($10,000) | ($10,000) |
| PA state tax credit | $0 | $9,000 |
| Federal deduction (assumes 25% rate) | $2,500 | $250 |
| Out of pocket | ($7,500) | ($750) |
PA Official website – Educational Improvement Tax Credit Program (EITC)
Whyy article – About Pennsylvania’s Educational Improvement Tax Credit (EITC)
PA Tax Credit – Friends of Education – FAQs for EITC
