PA Educational Improvement Tax Credit (EITC) Program
The Barn at Spring Brook Farm is an eligible Educational Improvement Organization (EIO) under PA’s Educational Improvement Tax Credit (EITC) program. What this means is that any business that pays PA taxes can register with the state now and apply for tax credits no earlier than 12:00am, July 3, 2023. Qualifying businesses then make a donation to The Barn at Spring Brook Farm*. Businesses also receive a charitable deduction on their federal tax returns.
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Tax credits are equal to 75% of its contribution up to a maximum of $750,000 per taxable year and can be increased to 90% of the contribution if the business agrees to provide the same amount for two consecutive tax years.
To Visit the PA EITC Website: Go to www.dced.pa.gov/programs/educational-improvement-tax-credit-program-eitc/
Who Qualifies? Any business including S-Corporations, Partnerships, and LLCs in the Commonwealth of Pennsylvania that is subject to any of the following taxes can participate:
- 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 it Works:
- You or your tax advisor registers your business by creating a user name and password at:
- Next, you or your tax advisor completes the application. The Business Application Guide explains the process of applying: www.dced.pa.gov/download/apply-single-application-short-app-121516/?wpdmdl=73144.
- If approved, your business is eligible for a tax credit equal to 75% of its contribution to The Barn, up to a maximum of $750,000 per taxable year.
- The tax credit may be increased to 90% of the up to a maximum of $750,000 per taxable year, if the business agrees at the time of application to provide the same amount of contribution for two consecutive tax years. To ensure the receipt and retention of the 90% tax credit, the business must make the same amount of contribution in each of the two consecutive tax years.
- Applications for tax credits for program fiscal year 2023-24 (July 1, 2023 through June 30, 2024) will be accepted beginning July 3, 2023. Tax credit applications will be processed on a first-come-first-served basis by submission date. Applications will be approved until the amount of available tax credits is exhausted.
* The mission of The Barn at Spring Brook Farm is to enrich the developmental skills and lives of children with disabilities through animal-assisted and nature-based experiences. Donations resulting from participation in the EITC program will benefit Camp Geronimo, The Barn’s summer day camp program for children with disabilities.