Below is a link to the current Pennsylvania law governing the Educational Improvement Tax Credit (“EITC”) program.
Below is a link to the Department of Community and Economic Development which administers the EITC program.
In 2015, the PA Department of Revenue issued Informational Notice Miscellaneous Tax 2015-01, which offered guidance on Special Purpose Entities. The link is below.
In 2018, the Internal Revenue Service issued a notice of proposed rulemaking and notification of public hearing, which relates to programs like the EITC program in Pennsylvania. Below is the link to the proposed rulemaking regarding contributions in exchange for state and local tax credits.
Federal Register: Contributions in Exchange for State or Local Tax Credits
In 2019, the Internal Revenue Service issued final rules for programs like the EITC program in Pennsylvania. These rules discuss the availability of an advertising deduction under I.R.C. § 162 for businesses that participate in programs like the Educational Improvement Organization program. Below is the link to the notice of proposed rulemaking regarding the treatment of payments to charitable entities in return for consideration.
Federal Register: Treatment of Payment to Charitable Entities in Return for Consideration
In 2020, the Internal Revenue Service issued final regulations for programs like the EITC program in Pennsylvania. These rules discuss the availability of a deduction under I.R.C. § 162 for businesses that participate in the Educational Improvement Organization program. Below is a link to the Internal Revenue Service’s official interpretation of the statute.