Tax Credit Programs
Are you eligible for a tax credit program or is your business eligible?
Educational Improvement Tax Credit Program
The EITC program provides companies with a 75 percent tax credit for donations to a nonprofit scholarship or educational improvement organization. The tax credit increases to 90 percent if the same commitment is made for two consecutive years. A company paying taxes in Pennsylvania can receive up to $750,000 in tax credits.
Opportunity Scholarship Tax Credit Program
Modeled after the popular EITC program, the OSTC program provides tuition assistance to Pennsylvania children who live within the attendance boundaries of a low-achieving public school. A low-achieving school is defined as a public elementary or secondary school ranking in the bottom 15 percent of their designation as an elementary or secondary school based upon combined math and reading Pennsylvania System of School Assessment (PSSA) scores.
Similar to the EITC program, the OSTC program awards Pennsylvania businesses a tax credit of 75 percent (up to a maximum of $750,000 per taxable year) if the gift is made for one year or 90 percent if the company commits to making the same donation for two consecutive years. OSTC funds are available in addition to any credits received under the EITC program. Total program funding is $50 million.
Central Pennsylvania Scholarship Fund
This fund works with several Special Purpose Entities (SPE), which allows individuals or couples to receive Pennsylvania EITC tax credits up to your individual joint liability. The SPE offers membership to individuals/couples with a minimum Pennsylvania tax liability of $3,500 annually. Individuals/couples must donate at least $3,500 annually to participate in this program.
Please contact James Jenkins at 717-328-6324 or firstname.lastname@example.org for more information.
How to Apply
The application process is simple: visit dced.pa.gov and search either EITC or OSTC. Credit applications are processed on a first-come, first-served basis by day submitted. All applications received on a specific day are processed on a random basis before moving on to the next day’s applications. Qualified applications will be approved until the amount of available tax credits is exhausted.
Tax credits equal to 75 percent of the contribution up to a maximum of $750,000 per taxable year. Can be increased to 90 percent of the contribution if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.
Tax credits equal to 75 percent of the contribution up to a maximum of $750,000 per taxable year. Can be increased to 90 percent of the contribution if a business agrees to provide same amount for two consecutive tax years. Total program funding is $50 million.
Eligibility for EITC and OSTC Programs
The EITC and OSTC programs offer a great way for your business to use tax credit for philanthropic purposes. You are eligible to participate in the program if your company is authorized to do business in Pennsylvania and is subject to one or more of the following taxes:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance and Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921
If you have questions, please contact James Jenkins at 717-328-6324 or email@example.com