As if the Tax Cuts and Jobs Act (TCJA) changes to state and local taxes were not enough, the IRS further sought to reduce tax benefits from new and existing workarounds by focusing on charitable contributions that qualify to receive state or local tax credits. Pennsylvania’s popular pre-TCJA program, the Educational Improvement Tax Credit (EITC), is affected by this new IRS regulation. Despite this, many support the program as it still provides cash flow and tax planning benefits in your charitable planning. Today, we discuss what to consider when deciding if you should participate in the PA EITC program.

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