ABOUT EITC & OSTC

 Basic Facts:

     •EITC participants can redirect their PA tax liability to the EITC program

     •EITC participants receive up to a 90% tax credit for their contribution

     •EITC tax credits are given for the calendar year in which contributions are made

     •EITC contributions fund scholarships at Pennsylvania’s non-public schools

     •EITC scholarships make school choice a reality for thousands of families

The Educational Improvement Tax Credit program (EITC) provides tax credits for gifts given in support of students who qualify for financial aid, while the Opportunity Scholarship Tax Credit program (OSTC) specifically provides support for qualifying students from low-achieving school districts (public schools that perform in the bottom 15% of Pennsylvania schools). The difference between them is the beneficiaries:

• EITC has 3 tax credits available:
  • Contributions to an eligible "Scholarship Organization" (SO) which provides scholarships for students in Grades K-12 whose families meet program guidelines;
  • Contributions to a "Pre-Kindergarten Scholarship Organization" (PKSO) which provides scholarships for students in Pre-K whose families meet program guidelines; and
  • Contributions to an "Education Improvement Organization" (EIO). An EIO provides funds to organizations which offer enhanced curricula to public schools. 
• OSTC provides tax credits to enable students in Grades K-12 who reside in a low-achieving school (ranked in the lowest 15% of the Commonwealth) to receive scholarships.

How do the programs differ in practice?

• The programs offer the same tax credit benefits.
• Household income guidelines are the same for both programs.
• To qualify for OSTC, a family must reside in the bottom 15% achieving schools in Pennsylvania.
• EITC allows for a maximum scholarship of full tuition and fees.
• OSTC allows for a maximum scholarship of $8,500 ($15,000 for special needs children).
• EITC and OSTC scholarships can be stacked so the maximum scholarship level of full tuition and fees can be reached.

You can learn more about these tax credit programs at https://dced.pa.gov/programs/educational-improvement-tax-credit-program-eitc/.