The Pennsylvania Education Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow businesses to utilize their Pennsylvania tax liability to provide scholarships to needy students. A business paying Pennsylvania taxes can get up to a 90% state tax credit for contributions made to state-approved organizations which help children in kindergarten through 12th grade.
The tax credit procedures for the EITC and OSTC programs are identical -- the difference between the two is the beneficiaries:
Businesses paying Pennsylvania taxes complete a simple online application to participate in one of the above four programs. Upon approval, the taxpayer can receive a credit for between 75% – 100% of their Pennsylvania state tax liability by making a contribution to the Foundation for Jewish Day Schools.
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:
Pennsylvania awards these business tax credits on a first-come, first-served basis. If approved, the business will receive a letter from the DCED and then has 60 days to make its financial contribution to an approved organization such as the Foundation for Jewish Day Schools. The Foundation will provide the business a written acknowledgement which the business sends to the Commonwealth so the tax credits can be applied.
For more information on participation by a business, contact Ellen Matz, Executive Director of the Foundation for Jewish Day Schools, at firstname.lastname@example.org or
There are step-by-step instructions on the Foundation's website at:
Yes! A business owner can participate in BOTH; as its business (C-Corp, LLC, LLP, etc) and as an individual through a Special Purpose Entity (SPE).
The individual does not need to reside, nor does the business need to be incorporated in Pennsylvania, but Pennsylvania taxes must be paid in each case.
A business owner can become a member of a PEP Special Purpose Entity. This is the vehicle which enables the individual's Pennsylvania tax liability to flow through it for the purpose of participating in the EITC/OSTC program. It is the SPE which makes the application to the Commonwealth on behalf of its members.
For a business submitting its own application, maximums are: