PA EITC Step By Step

  1. Does my company pay any of the taxes eligible for the tax credit program?
  2. How much do I want to commit to this program? For a two year commitment you will need to project income for these years. The contribution should be calculated using the lowest projected income amount.
  3. Fill out the online application by clicking here - Single Application for Assistance.  Follow the instructions and submit the form to the Pennsylvania State of Innovation.  Additional application assistance is available by clicking here - Business Application Guide.
  4. Wait for an approval response from PA DCED (typically 2-3 weeks).
  5. Once an approval response is recieved you can now select your Pennsylvania organization to make your donation. Your donation must be made within 60 days of the date on the approval letter. Do not make your donations prior to receiving your approval letters.
  6. Once you have made your donation to your charity you should receive a notification from the charity that the donation has been received, this typically comes in the form of a thank you letter. It is very important that you receive this from the charity. This notification must be submitted to PA DCED within 90 days from the date of the approval letter.
  7. If you are an S-corporation, LLC or Partnership (Pass-through Entity) - decide how you would like you credit applied to you tax liability in the following in one of the three following ways.

    1. Elect to pass-through the entire credit from the entity to the shareholders to apply to the shareholders/members’ Personal Income Tax in the year of contribution. The election should be made on form Rev-1123 and needs to be filed before the due date of the PA corporate tax report and mailed to:
      PA Department of Revenue
      Bureau of Corporation Taxes, PO Box 280701
      Harrisburg, PA 17128-0701
    2. The pass-through entity can utilize the credit by tranfering the credit to the members/shareholders for Personal Income Tax in the year of contribution.
    3. Apply 100% of the credit to business level taxes by C-Corporation.

      ***Note: Credits cannot be refunded or carried over to a subsequent tax year if the credits exceed the tax liability of the taxpayer.
CLICK HERE to visit the Pennsylvania Department of Community & Economic Development website which will provide you with an overview, application timeline and guidelines.
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