EITC + OSTC
Educational Improvement Tax Credits (EITC) and Opportunity Scholarship Tax Credits (OSTC) are Pennsylvania State tax credits for businesses that make donations to scholarship organizations in Pennsylvania. Whether you have a “C,” “S,” or “LLC,” your company can have a great impact on children’s education.
Good for Business
You can receive up to 90% dollar for dollar credit against state corporate taxes. The subsequent federal tax deduction reduces the cost to pennies on the dollar. Once approved, you can apply the credit against your quarterly tax deposits or wait until you file your return.
There’s no risk to apply. You apply for the credit, and, if approved, you are not required to make the contribution if you are no longer able to do so.
Good for the Community
Funds pay for scholarships, which make attending private school affordable for children from low-income families. Better educated students are a great investment in future employees and consumers.
Through your EITC or OSTC contribution, you can pay less than ten cents on the dollar to help the most deserving children in our North Philadelphia area get an education that can change their lives. E-mail Kelly Barone, our Development Coordinator, at firstname.lastname@example.org or call (215) 223-1162 to get answers to your questions. Or visit the official website for OSTC to learn more. Ask your tax professional to assess how the program can work best for you.
Frequently Asked Questions
Should I use EITC or OSTC?
Both programs have the same impact: scholarships for our children. However, tax credits are currently available under OSTC, whereas EITC credits are typically assigned in full to past program participants, on a first-come, first-served basis. So we recommend applying through OSTC to best assure access to available credits.
I already use EITC. If I don’t get my full EITC credits, can I apply for OSTC as well?
Yes. Even if you have already received EITC credits you can apply for OSTC, up to the maximum of $400,000 per tax year, per program (for a combined total of $800,000).