Educational Improvement Tax Credits (EITC) Update

The Commonwealth of Pennsylvania’s Department of Community and Economic Development (DCED) has clarified that businesses who received a conditional approval letter in December may choose to take their PA tax credit in 2015 or 2016 tax year. This means that, due to the circumstances created by the budget impasse, a 2016 EITC/OSTC business contribution can be retroactively applied to fiscal year 2015. This will only impact the state credit, and federal tax obligations for businesses will remain unchanged.

The deadline for a business to make its contribution is still 60 days from the date on the conditional approval letter (Dec. 24, 2015). Guidelines for the program are available here.

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