PA Tax Credit Programs
The Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) are Pennsylvania tax credit programs that allow Pennsylvania businesses that pay applicable taxes, as well as individuals who pay personal income tax through LLC, S Corp, or who own or are a member of an LLP, to receive up to a 90% TAX CREDIT to be used by schools like Nazareth Academy High School for financial aid.
EITC and OSTC
How it works:
The process is easy! You can apply for one or two years of credit. Click Here to learn more about the application process. For a one-year commitment, you will receive a tax credit for 75% of your contribution. For two years, you will receive a tax credit for 90% of your contribution. There is no minimum to participate and businesses can receive up to $750,000 in tax credit annually.
Contact our Advancement Office at 215.268.1047 for more information on the ways you can give your EITC/OSTC gift.
- How is OSTC different from EITC?
- What businesses and taxes are eligible?
- What is the business application timeline?
- How do I participate/apply?
- What happens after I apply?
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.
Business in Pennsylvania that pay the following taxes:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (with some exclusions)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921
On May 15, businesses who fulfilled their two-year commitment can reapply to renew their two-year commitment. Businesses in the middle of their two-year commitment can renew for a second year.
On July 1 all other businesses can apply.
Nazareth Academy High School is happy to assist interested businesses with the application process.
For additional information or assistance contact Director of Development and Marketing Keith Czarny at firstname.lastname@example.org. Thank you.
Pennsylvania businesses may apply through Department of Community and Economic Development’s (DCED) electronic single application system.
- Application are only accepted online
- All applications are approved on a first-come, first-served basis by date received
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.