The application process for Education Improvement Tax Credits (EITC) opens on May 15 for businesses in year two of their contribution commitment and for those that have recently completed a two-year commitment. The early application period runs until June 30 and provides ongoing EITC participants the opportunity to lock up tax credits before the process opens to all businesses on July 1.
The EITC program is very popular and many credit types sell out quickly, making it vital for eligible businesses to renew during the early application period. Entities waiting until July 1 to apply may not receive their first choice of credits or may be put on the waitlist.
Due to COVID-19, Pennsylvania has extended the contribution deadline, as previously reported here. The state is providing flexibility, allowing businesses to make contributions later in the cycle and removing tax credit reductions for those that don’t meet full contribution commitments.
For more information about the EITC program, contact a Schneider Downs state and local tax professional.
