Redirect your PA State Tax Liability for a 90% Tax Credit

How it Works

Your company’s charitable giving becomes a low-cost gift when you redirect your state business taxes to the participating EIO of your choice.

• A one-year commitment will earn you a state tax credit of 75% of your contribution. A business that agrees to provide the same amount for two consecutive tax years will earn a credit of 90%.
• The non-credited portion of the gift can be claimed as a charitable contribution for federal tax purposes.
• Businesses may request up to $750,000 in tax credits per year.
• Eligible entities include businesses subject to the following taxes:
  • Corporate Net Income Tax
  • Capital Stock/Foreign Franchise Tax
  • Bank Shares Tax
  • Title Insurance and Trust Company Shares Tax
  • Insurance Premiums Tax
  • Mutual Thrift Tax
  • Gross Receipts Tax
  • Tax under the Insurance Company Law of 1921
  • Personal Income Tax

How Does My Company Apply?

All applicants are required to submit applications electronically through dced.pa.gov. The business application guide explains the process of applying. Businesses must apply specifically for EIO credits if they wish to support the Colebrookdale Railroad’s educational and vocational training programs.

New businesses may apply beginning July 1. Applications are approved on a first-come, first-served basis by date submitted.

The Department of Community and Economic Development will send an approval letter to businesses awarded educational improvement tax credits. The business then has 60 days to send its philanthropic contribution to the Colebrookdale Railroad Preservation Trust, 100 South Chestnut Street, Boyertown, PA 19512. We will issue a gift acknowledgment which the business must send to the Department of Community and Economic Development within 90 days of the original approval letter. After sharing this written acknowledgment with the department, the business will receive the amount of tax credits outlined in the original approval letter.

Almost all state taxes can be offset by this credit.

Individuals who pay Pennsylvania income taxes and businesses that are authorized to do business in Pennsylvania who are subject to one or more of the following taxes:

• Personal Income Tax, Sub-chapter S-corporations and other “pass-through” entities will be able to use the credit against the shareholders’, members’, or partners’ PA personal income taxes

• Corporate Net Income Tax

• Malt Beverage Tax

• Bank and Trust Company Shares Tax

• Insurance Premiums Tax (excluding surplus lines, unauthorized, domestic/foreign marine)

• Mutual Thrift Institutions Tax

• Title Insurance Companies Shares Tax

• Retaliatory Fees under Section 212 of the Insurance Company Law of 1921