EITC for Businesses

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The Pennsylvania Education Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow businesses to utilize their PA tax liability to provide scholarships to income-qualifying students. A business paying PA taxes can get up to a 90% state tax credit for contributions made to state-approved organizations.

Businesses wishing to apply for their own EITC award complete an online application for the EITC or OSTC program. If the business makes a two-year commitment for the same amount in each of the two years, it receives a state tax credit equal to 90% of the amount contributed. For a one-year commitment, the business receives a 75% state tax credit. 

Pennsylvania businesses apply to participate by:

• Submitting an application directly to Pennsylvania’s Department of Community and Economic Development (DCED); or
• Joining a Special Purpose Entity (SPE) at the Pennsylvania Education Partnership LLC, where the contributions and tax credits are passed through to the individual.

These tax credits are awarded through a lottery system. If approved for its own EITC award, the business will receive a letter from the DCED and then has 60 days to make its financial contribution to an approved Scholarship Organization such as our partner, The Foundation for Jewish Day Schools. FJDS will provide the business a written acknowledgement which the business sends to the Commonwealth so the tax credits can be applied.