Educational Improvement Tax Credit program (EITC)

Tax credits are available on a first-come, first-served basis for contributions to educational improvement organizations such as The Chester Fund. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.

Receive a generous tax credit

A business may receive a tax credit equal to 75% of its contribution, up to a maximum of $750,000 per taxable year. A business that agrees to make a contribution to The Chester Fund for two consecutive years may receive a tax credit equal to 90% of its contribution.

In effect, it costs businesses a dime to give a dollar.

What is the bottom line for your business?

Businesses participating in the EITC program receive a state tax credit of up to 90% on the amount they donate to The Chester Fund. The remaining 10% can be deducted on your federal tax return. For 2017-18 the maximum allowable amount a business can claim through EITC is $833,333.

Hover or tap the donation amounts below to see a breakdown of how much you can save in taxes by giving to The Chester Fund.

$1,000Tax savings: $935

Give $1,000

State Credit $900
Federal Deduction $35
Total Tax Savings $935
Out-of-Pocket $65

$10,000Tax savings: $9,350

Give $10,000

State Credit $9,000
Federal Deduction $350
Total Tax Savings $9,350
Out-of-Pocket $650

$100,000Tax savings: $93,500

Give $100,000

State Credit $90,000
Federal Deduction $3,500
Total Tax Savings $93,500
Out-of-Pocket $6,500

$500,000Tax savings: $467,500

Give $500,000

State Credit $450,000
Federal Deduction $17,500
Total Tax Savings $467,500
Out-of-Pocket $32,500

$833,333Tax savings: $779,167

Give $833,333

State Credit $750,000
Federal Deduction $29,167
Total Tax Savings $779,167
Out-of-Pocket $54,166

Learn More

What businesses and taxes are eligible?

Businesses authorized to do business in Pennsylvania, who are subject to one or more of the following taxes, may apply for EITC eligibility:

  • 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

Application Deadlines for this year

Returning businesses: apply online beginning May 15.

New to these programs? Apply online beginning July 1.

Apply on July 1

Please note that applications are accepted on a “first come, first served” basis, and EITC in particular runs out of funds quickly, so it is important for new businesses to submit on July 1.

For more information, please read the PA-EITC business application guidelines.

How can I apply for EITC?

Please contact Donna Armand to discuss whether EITC is right for your company and to walk through the EITC application process.

Donna can be reached at 610-859-2988 or darmand@thechesterfund.org

The Chester Fund for Education and the Arts supports The Chester Charter School for the Arts (CCSA), an arts-integrated, academically rigorous, non-profit public charter school in the Chester Upland School District.
EIN: 20-3297449

The Chester Charter School for the Arts prepares children to employ their intellectual and creative powers to enrich their community.

Stay In Touch!