Education Improvement Tax Credit (EITC)

Advancing educational opportunities through your PA Tax Credits

Across the Lehigh Valley, families and schools are working together to create brighter futures. United Way of the Greater Lehigh Valley strengthens that work by expanding educational opportunities that help students learn, grow and prepare for what comes next.

Through advanced academic programming delivered through United Way Community Schools, students build academic skills, gain confidence and connect classroom learning to future possibilities. Families find meaningful ways to participate in their children’s learning, helping that progress extend beyond the school day. Pre-K scholarships expand access to high-quality early education, helping eligible children enter school ready to learn.

And you can fuel this work through the taxes you already pay.

Interested in learning more? Contact Maria Esposito at 610-807-5744.

Empowering Donors through EITC

Pennsylvania’s Educational Improvement Tax Credit (EITC) program gives eligible individuals and businesses the opportunity to direct a portion of their state tax dollars toward education in their community.

Through United Way of the Greater Lehigh Valley’s Special Purpose Entity (SPE), participants can receive up to a 90% Pennsylvania tax credit while investing in local students’ success.

Participation requires an upfront contribution. Tax credits and any allowable federal deduction can substantially reduce the final out-of-pocket cost, helping your contribution make a greater impact.

Explore Your Potential Tax Benefits

What could your contribution make possible? Use the EITC calculator to explore your estimated tax benefits and out-of-pocket cost.

Estimates are for illustration only. Your actual benefits depend on your tax situation and participation terms. Consult your tax advisor before making a commitment.

How Pennsylvania’s EITC Works:

1. Confirm Your Eligibility

Individuals and businesses with qualifying Pennsylvania tax liability may participate through UWGLV’s SPE.

For individuals, eligibility includes an affiliation with a qualifying Pennsylvania business as an employee, shareholder, partner, member or owner. A household income of $200,000 or more is a general guideline for exploring participation, rather than a firm eligibility requirement.

UWGLV can explain the participation requirements, while your tax advisor can help confirm eligibility and estimate your available Pennsylvania tax liability.

2. Join United Way of the Greater Lehigh Valley’s SPE

Complete a simple joinder agreement to enroll in UWGLV’s established SPE and request your desired tax credit amount, subject to availability.

The SPE applies for credits on behalf of its members, and UWGLV guides you through the process.

PA Educational Improvement Tax Credit

EITC Impact Calculator

Estimate your potential tax credit and the impact of your contribution.

Your annual PA taxable income

We'll estimate your PA tax liability at 3.07% of this figure.

Estimated PA tax liability $0

Amount you'd like to give as an EITC gift up to your full liability

The 90% credit shown here requires a minimum annual gift of $6,000 and a 2-year giving commitment.

90%

10%

Benefits UWGLV EIO approved programs 90% of your gift: $0
Remaining balance 10% of your gift: $0
Estimated federal tax benefit assumes 37% bracket: −$0
Your net cost: $0

This tool provides an estimate for planning purposes only and isn't tax advice. The 90% credit shown requires a minimum annual gift of $6,000 with a 2-year commitment. Actual PA tax liability, EITC award levels, and your true tax benefit depend on your complete return — talk to your tax advisor before finalizing a gift.

3. Make Your Contribution

A two-year commitment with a minimum annual contribution is $6,000 is suggested. A one-year commitment can receive up to a 75% PA tax credit, while a two-year commitment can receive up to a 90% PA tax credit. You may contribute by check or bank transfer.

UWGLV will explain the commitment options and applicable credit rate before you enroll.

4. Claim Your Tax Benefits

After year-end, you will receive K-1 documentation for your tax filing. Work with your tax advisor to claim your Pennsylvania tax credit and any allowable federal charitable deduction.

why it matters:

Your EITC contribution helps children build a stronger foundation for their futures, from early learning through their school years. Through advanced academic educational programming and Pre-K scholarships, your support helps:

Strengthen academic skills and confidence.
Encourage curiosity, critical thinking and engagement in learning.
Deepen family involvement in children’s education.
Connect learning to future education and career opportunities.
Help eligible families afford high-quality Pre-K education.

It is a meaningful way to invest in local children while making your existing tax dollars go further.

QUICK FAQS:

What does my contribution support?

EITC contributions through UWGLV support advanced academic programming and Pre-K scholarships for eligible children. UWGLV can explain the available giving opportunities and help you understand how your contribution will make a local impact.

Can both individuals and businesses participate?

Yes. Eligible individuals and businesses can participate through UWGLV’s SPE. UWGLV can help you understand the requirements and next steps for your situation.

What is an SPE?

A Special Purpose Entity is an entity formed to participate in Pennsylvania’s EITC program. UWGLV’s established SPE brings participants together, applies for tax credits on their behalf and coordinates the process.

How much will participation cost?

Your final out-of-pocket cost depends on your contribution, applicable tax credit and any federal tax benefit. The suggested minimum annual contribution is $6,000, paid upfront. Use the calculator above to explore an estimate, then review the details with your tax advisor.

Can I choose how long to participate?

One-year and two-year commitments are available. UWGLV will explain how each option affects your participation and potential tax benefits.

How do I get started?

Contact Maria Esposito, Senior Director, EITC, at [email protected] or 610-807-5744. Tax credits are limited, and United Way of the Greater Lehigh Valley can help you explore availability and determine your next steps.