What are the EITC and OSTC programs?
The Educational Improvement Tax Credit (EITC) is a great option for giving to SPS and receiving a tax credit for your business simultaneously. Instead of giving corporate tax dollars to Pennsylvania, companies can make a majority of their tax payment in the form of a contribution to a qualified scholarship organization, like SPS.
The Opportunity Scholarship Tax Credit (OSTC) is EITC’s sister program and operates by earmarking funds for low-income students applying to SPS from failing schools. Businesses can apply for both programs simultaneously, and the benefits for the School are substantial.
Under the current rules of the EITC/OSTC programs, a company can receive Pennsylvania tax credits equal to 75% of its contribution up to a maximum of $400,000 per taxable year. This figure can be increased to 90% of a company’s contribution if the company agrees to provide the same amount for two consecutive tax years. Read the most up-to-date information about EITC/OSTC by clicking here.
Who is eligible?
Businesses authorized to operate in Pennsylvania and pay one of the following Pennsylvania taxes:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Personal Income Tax of S Corporation Shareholders, or partners in a general or limited partnership
How can I participate?
The online application process takes only a few minutes, but first please contact Clare Dych, Director of Development, to discuss your interest in applying: 215-925-3963 ext. 405 or firstname.lastname@example.org.