THE EDUCATIONAL IMPROVEMENT TAX CREDIT (EITC)/OPPORTUNITY SCHOLARSHIP TAX CREDIT (OSTC)
What are the EITC and OSTC programs?
The Educational Improvement Tax Credit (EITC) is a great option for giving to St. Peter’s School 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 St. Peter’s School. OSTC is EITC’s sister program, however, OSTC funds are earmarked for low-income students coming from failing schools. The application process is simple—you can apply for both programs at the same time—and the benefits for the School and for companies are substantial under both programs.
Under the current rules of the program, a company can receive PA State tax credits equal to 75% of its contribution up to a maximum of $400,000 per taxable year. This can be increased to 90% of the contribution if a company agrees to provide the same amount for two consecutive tax years. The New PA website for EITC has the most up-to-date information regarding rules, eligibility, and forms. Learn more by clicking here
Who is eligible?
Businesses authorized to operate in Pennsylvania and pay one of the following PA 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 application process is online and only takes a few minutes, but first please contact Clare Dych, Director of Development: 215-925-3963 ext. 405 or email@example.com to discuss your interest in applying.