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Educational Improvement Tax Credit

What is the EITC Program?

The Educational Improvement Tax Credit (EITC) Program is a state-run program that provides companies or individuals with a state tax credit for making a contribution to a non-profit Scholarship Organization such as Valley School of Ligonier.  All contributions through EITC are used exclusively for financial aid at Valley School.
 
For more information on the EITC program, please contact Michelle Smith, Director of Development at 724.238.5028 or msmith@valleyschoolofligonier.org.
Business Guidelines
Entities eligible to apply for EITC are operating business firms authorized to do business in the Commonwealth of Pennsylvania that are subject to the following taxes: Personal Income Tax, Capital Stock/Foreign Franchise Tax, Corporate Net Income Tax, Bank Shares Tax, Title Insurance & Trust Company Shares Tax, Insurance Premiums Tax excluding unauthorized, domestic/foreign marine), Mutual Thrift Tax, Malt Beverage Tax or Surplus Lines Tax.
 
A business firm will be approved for available tax credits equal to 75% of its contribution(s) to Valley School, up to a maximum of $750,000 per taxable year.  The tax credit may be increased to 90% of the contribution(s) made, up to a maximum of $750,000 per taxable year, if the business firm agrees at the time of application to provide the same amount for two consecutive years.

For more information on business guidelines and deadlines, please visit:
Individual Guidelines
The EITC program allows an individual to benefit through the use of a Special Purpose Entity (SPE).  The SPE is a pass-through entity established in order for individuals to apply for and utilize EITC credits to offset their Pennsylvania personal income tax liability.  The SPE applies for tax credits, receives contributions from its members, and then distributes the funds to a Scholarship Organization such as Valley School.
 
The program is based on tax liability, not income.  An individual or couple filing jointly must have a state tax liability of $3,500 or more to participate.  To learn whether you qualify, find your PA tax liability on Form PA-40 line 12 of your most recent PA tax return.
 
Donors must be employed by or own a for-profit business, or own stock in a business that operates in Pennsylvania. You will receive a PA income tax credit equal to 90% of your contribution as well as a federal tax deduction on your remaining 10%.
 
For more information please visit:
 
Through the remarkable support of businesses and individuals in our region, over $500,000 was awarded to eligible students in the 2019-2020 academic school year. 
Thank you to our EITC Scholarship Partners!

A2 Properties LLC
Central Pennsylvania Scholarship Fund
Construction Engineering Consultants
First Commonwealth Financial Corporation
Inspired Restoration
Kuzneski Insurance Group
Laurel Valley Motors
M&T Bank
NexTier Bank
Orthopedic & Sports Physical Therapy Associates, Inc.
OSPTA Homecare & Hospice, LLC.
PNC Financial Services Group
Reparex Fabricated Systems
Reparex, Inc.
Riverbridge Partners
Robindale Energy
Seward Operating, LLC
Swank Associated Companies, Inc.
UPMC Health System



List of 3 frequently asked questions.

  • Q. Who is eligible to participate?

    The EITC program is available to businesses in the state of Pennsylvania that pay any of the following taxes:
    Corporate Net Income Tax
    Capital Stock Franchise Tax
    Bank and Trust Company Shares Tax
    Title Insurance Companies Share Tax
    Insurance Premiums Tax
    Mutual Thrift Institution Tax

  • Q. How does my contribution help Valley School?

    All funds received from the EITC program go directly to fund scholarships at Valley School of Ligonier. Valley School’s Financial Aid Program provides the opportunity for a diverse group of students to receive a high-quality education that otherwise may be unobtainable. In accordance with the school’s mission, this program provides Valley School with a student body that reflects a broad social, economic, and racial mix. At Valley School, the need for financial aid continues to increase each year. Since its inception at Valley School, the EITC program has generated more than $2,200,000 to support approximately 49% of our student population.

  • Q. How do I apply?

    Pennsylvania businesses can begin applying for EITC credits through DCED’s electronic single application system. All applications must be completed online beginning on May 15 if your business is already committed to a two-year donation or on July 1 for new applications. The EITC program is operated by the Department of Community and Economic Development (DCED). The application process is ran on a first-come, first-serve basis. For more information, visit the state website or call 1-866-466-3972.

Megan White, First Commonwealth Bank

As a community bank, First Commonwealth embraces the EITC program as another way that our company and our employees can be directly involved in supporting educational opportunities for our neighbors and clients. The support we provide for organizations like Valley School — thanks to the EITC program — is a vital part of how we fulfill our overall mission…to help our neighbors and businesses within our communities realize their financial goals as a trusted partner and friend.
Address: 153 Lupine Lane, Rector PA 15677 | Mail: PO Box 616 Ligonier, PA 15658 | (724) 238-6652 fax (724) 238-6838
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