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    Business Tax Credits and Incentives

    Educational Tax Credits

    The Educational Tax Credits program contains two sections of which credits may be awarded for applicants within the program.

    Overview

    The Educational Improvement Tax Credit (EITC) is available to eligible businesses that contribute to scholarship organizations (including pre-kindergarten) and educational improvement organizations, in order to promote expanded educational opportunities for students in Pennsylvania. The Program Guidelines provide more information. For more information on EITC review the Program Guidelines.

    The Opportunity Scholarship Tax Credit (OSTC) is available to eligible businesses that contribute to IRC 501C opportunity scholarship organizations approved by the Department of Community and Economic Development. Opportunity Scholarship Organizations can provide scholarships to eligible students living within the boundary of the lowest-achieving 15 percent of elementary and lowest-achieving 15 percent of secondary schools as published by the Department of Education. For more information on OSTC review the Program Guidelines.

    To speak with a representative of the program, please contact the Department of Community and Economic Development at 1-800-379-7448. Tax questions may be directed to the Department of Revenue at 717-772-3896 or ra-rvtaxcredits@pa.gov.

    To make an irrevocable election to pass-through an EITC to partners, members or shareholders, a business must complete form: REV-1123 [PDF]. A separate election must be completed for each year the credit is awarded and not used in whole or in part.  This election can be made online by logging on to myPATH and using the form: Pass Through My Restricted Credits.

    Informational Notice - Miscellaneous Tax 2015-01 -- Education Tax Credits [PDF]

    Restricted Tax Credit Bulletin 2021-01 - Limited Carryforward of Education Tax Credits [PDF]