ABOUT THE EITC PROGRAM
The Pennsylvania Educational Improvement Tax Credit (EITC) program provides individual taxpayers, businesses, or corporations the opportunity to redirect their state tax liability to Breakthrough of Greater Philadelphia, a qualified Educational Improvement Organization (EIO). In return, participants of the program receive a PA state tax credit for up to 90% of their contribution amount.
INDIVIDUAL CONTRIBUTIONS
Breakthrough of Greater Philadelphia is an approved Educational Improvement Organization (EIO) and is eligible to receive EITC contributions from individuals. This is an impactful way to give to Breakthrough at a minimal net out-of-pocket cost to the taxpayer.
Use this form to calculate the benefits for your specific scenario and contact a tax advisor with questions.
For more information about supporting Breakthrough’s mission through EITC giving, please contact us at development@breakthroughphilly.org.
For example, you have $5,000 in PA tax liability that you “gift” to Breakthrough. This would result in:
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A $4,500 PA tax credit
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A potential $500 federal tax deduction (if you itemize federal taxes)
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A net out-of-pocket cost to you of $500 or less (if you itemize)
APPLICATION PROCESS FOR BUSINESSES
In order to participate in the EITC program, a business needs to complete a simple application and must elect to donate to an EIO. Applications are processed on a first-come, first-served basis once submissions open on July 1.
The process is as follows:
Complete application and elect to donate to EIO
Application submitted to the Department of Community and Economic Development (DCED) for review
Once approved, the business has 60 days to send their donation to Breakthrough
Once the donation is received, the confirmation receipt must be sent to DCED within 90 days
The DCED will then notify the PA Department of Revenue to have the credit applied to the business taxpayer’s account
Contributions received through the EITC program are used for our tuition-free academic and co-curricular programming that serves middle and high school students in Philadelphia’s public, charter, and parochial schools.
For more information about supporting Breakthrough’s mission by redirecting your state taxes to contribute to Breakthrough, please contact development@breakthroughphilly.org.
RESOURCES AND IMPORTANT DATES
Eligibility
More information about specific eligibility can be found on the
PA Department of Community & Economic Development website.
Application Guide
View a comprehensive step-by-step guide to applying.
First-Time Applicants
First Time Participants can complete DCED’s Single Application for Assistance.
Deadlines
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First-Time Applicants: Applications can be submitted beginning on July 1. Applications are accepted on a rolling basis until funds are exhausted.
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Renewing Applicants: Applications can be submitted beginning on May 15.
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Once Approved: Approvals from the state are granted in late fall and once businesses receive approval, they can begin sending donations.
For businesses, your company’s CFO, finance/HR department, or accountant will know if your company is eligible to participate in EITC—all you have to do is ask.
