EITC, OSTC & Friends Collaborative
Your Business Can Make a Difference
Giving Through EITC
What is the Educational Improvement Tax Credit Program?
The Pennsylvania Educational Tax Credit (PA EITC) program allows businesses in the Commonwealth to earn a tax credit of up to 90 percent of certain Pennsylvania taxes with a donation to a “scholarship organization,” a special category under the state tax code.
West Chester Friends School is a registered organization, so a gift to the School may result in a substantial tax credit, not simply a tax deduction.
Funds received under this program provide direct support to WCFS’s need-based scholarship program. Please consider helping your local community by making a West Chester Friends School experience possible for additional qualified students through this unique program.
Businesses authorized to do business in Pennsylvania are subject to one or more of the following taxes: Corporate Net Income Tax; Capital Stock Franchise Tax, Bank and Trust Company Shares Tax; Title Insurance Companies Shares Tax; Title Insurance Companies Shares Tax; Insurance Premiums Tax; or Mutual Information Tax.
What’s the Tax Benefit?
Tax credits equal to 75% of the contribution up to a maximum of $200,000 per taxable year; this can be increased to 90% of the contribution if business agrees to provide the same amount for two consecutive years. For contributions to pre-kindergarten scholarship organizations, a business may receive a tax credit of 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $100,000 annually. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.
Are There Restrictions?
Applications are processed on a first-come-first-served basis by day submitted. The donors must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter. Tax credit not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable.
Where to Apply?
DCED Center for Business Financing, Tax Credit Division (717) 787-7120, or firstname.lastname@example.org. Guidelines are available online at www.newpa.com
For More Information:
Contact the Development Office at West Chester Friends School, 610-696-2820.
Giving Through OSTC
What is OSTC?
The Opportunity Scholarship Tax Credit (OSTC) program provides tax credits to eligible businesses contributing to an Opportunity Scholarship Organization. Business contributions are then used by Opportunity Scholarship Organizations to provide tuition assistance in the form of scholarships to eligible students residing within the boundaries of a low-achieving school to attend another public school outside of their district or nonpublic 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.
Students who live within the attendance boundaries of a low-achieving school, as determined by the Pennsylvania Department of Education, are eligible to receive a scholarship if their household’s annual income is no greater than $77,648 plus $15,530 for each dependent member of the household. For the 2017-18 school year, the maximum scholarship award available to non-special education students is $8,500 and the maximum for a special education student is $15,000.
Where to Apply
Go to the OSTCpage where the business application guide explains the process of applying. Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.
Applicants interested in applying as an Opportunity Scholarship Organization can apply at DCED Center for Business Financing, Tax Credit Division, 4th Floor, Commonwealth Keystone Building, 400 North Street, Harrisburg, PA 17120: (717)-787-7120 or RA-EITC@pa.gov. Do not use the Single Application. The application process is listed in the guidelines.
The list of approved Opportunity Scholarship Organizations can be found on the Parents/Student FAQ page.