Pennsylvania EITC/OSTC Tax Credit Programs

EITC and OSTC

Pennsylvania has established two transformational programs - the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) – that allow individuals, as well as companies, who ordinarily pay PA state taxes, to direct their tax payments to schools like Nazareth to provide financial aid to qualified students and their families. In exchange, participating businesses and individuals are given a tax credit for that year by the state.

Nazareth Academy partners with the independent charitable Scholarship Organizations (SO) listed below to help individuals take advantage of this program. Eligible individuals may participate by contributing to an LLC as an accredited investor and will receive an IRS Schedule K-1 to report and apply toward their tax liability.

BLOCS – Business Leaders Organized for Catholic Schools - BLOCSTaxCreditInformation.pdf

$5,000 minimum per individual; ask for two-year commitment but not held to it; 90% tax credit
They process approximately $50 million per year
They require 10% of donation go to their emergency scholarship fund and their operating costs
More flexible through the year, good availability

The Foundation for Catholic Education - The Foundation for Catholic Education-- EITC

Central PA Scholarship Organization – Western PA

$3,500 minimum per individual; 1 or 2-year commitment; both 90% tax credit
No charge required, 100% to the designated school
They run on continuous cycles, moving the deadline out every few weeks until the SPE's are full

For additional information about the EITC/OSTC programs, please contact Trish Decker, Director of Development, 215-268-1048, tdecker@nazarethacademyhs.org.

Donor Testimonial

“As a family with three daughters, we believe strongly in the value of Catholic education and wish to see it continue for many years to come. We feel it is more important than ever for the Nazareth community to come together and lend its support to this institution so that it remains available and affordable to young women for generations to come. It is why we strongly advocate for and participate in the EITC (Educational Improvement Tax Credit) program as a way to support Nazareth. It is just another way to sustain an institution we are confident will be a nurturing and academically challenging arena for our daughter for the next four years and that prepares her for life beyond high school.” ~The Snyder Family P'24

Frequently Asked Questions

How is OSTC different from EITC?

The EITC program provides tax credits for gifts given in support of financial aid for any Pennsylvania student that meets the annual household income requirements. The only restriction on the size of an EITC award is the tuition for the scholarship organization that is awarding the EITC funds.

The OSTC program deepens the EITC requirements past annual household income to include only those students who live within the boundaries of a low-achieving school district. These are districts with public schools that perform in the bottom 15% of Pennsylvania schools. The OSTC program provides qualified students within these districts with opportunities to receive a quality education from top level institutions. Further, a scholarship organization may only award $8,500 in OSTC funds per student.

The budget and application for the OSTC is separate from the EITC and businesses may apply for both programs within a given year. There is no difference for the business between EITC and OSTC, the two programs have different parameters for the school to award the funds.

What businesses and taxes are eligible?

What is the business application timeline?

What is the business application process?

Pennsylvania businesses may apply through Department of Community and Economic Development’s (DCED) electronic single application system.

Applications are only accepted online
All applications are approved on a first-come, first-served basis by date received

EITC – Learn more about the program and how to apply: Educational Improvement Tax Credit Program (EITC) - PA Dept. of Community & Economic Development

OSTC – Learn more about the program and how to apply: Opportunity Scholarship Tax Credit Program (OSTC) - PA Department of Community & Economic Development

After you apply:

The Department of Community and Economic Development (DCED) will send an approval letter to businesses that have been awarded tax credits.
The business then has 60 days to send its philanthropic contribution to Nazareth Academy High School. Nazareth will issue a gift acknowledgment receipt which the business must send to the DCED within 90 days of the original approval letter.
After sharing this written acknowledgment with the DCED, the business will receive the amount of tax credits outlined in the original approval letter from the DCED.

What is the individual timeline/application process?

It is an easy application process, and we will connect you with the proper organization to join an SPE (Special Purpose Entity). Timelines are rolling throughout the year and the contribution is due once accepted. When the SPE receives the tax credits they will then send a letter to each individual with their appropriate tax credits to be used at the time of filing. The SPE then sends your contribution to Nazareth Academy High School.

Thank you to our EITC and OSTC Donors!

Mrs. Lauren Michalski '90 Adamski
Mr. and Mrs. John Brennan P ’10
A.T. Chadwick Company, Inc.
Mr. Guy and Mrs. Christine Czarnecki '83 Ciarrocchi
Mr. and Mrs. Joseph Coyle P '24
Enterprise Holdings
Mr. James Figaniak P'08
Greenwich Terminals, LLC
Griff and Associates, LP
Henkels Foundation
Mr. Thomas and Mrs. Angela DiBello '80 Holt
Mr. Charles and Mrs. Nina Tanghe '98 Ingulli P '28
Mr. Brendan and Mrs. Brigid '98 Sullivan Kelley P '28
Mr. David G. McBride
Mr. and Mrs. William McDevitt
Mr. Brian and Mrs. Loren McCloskey '97 Pierson P '28
Mr. and Mrs. Michael Pigott P'27
Mr. John and Mrs. Carolyn Ochmanowicz '98 Shimp
Mr. and Mrs. Luke Snyder P '24 '27
Mr. and Mrs. James Trusdell P '14
United Healthcare Insurance Company