Pennsylvania Educational Improvement Tax Credits (EITC), Pre-K Scholarship Tax Credit (PKTC), & Opportunity Scholarship Tax Credit (OSTC)
EITC and OSTC scholarship contributions help families in our local community. Students who may not be able to afford the excellent Catholic education offered by Holy Child School at Rosemont but who would benefit from it would qualify. Since 2003, over 60 businesses and individuals have donated more than $4 million in financial, need-based tuition assistance. As a direct result, more than 100 Holy Child students have received financial support.
Businesses authorized to do business in the Commonwealth of Pennsylvania and who are subject to one or more of the following taxes may apply:
- Corporate Net Income Tax
- Capital Stock Foreign Franchise Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax
- Malt Beverage Tax
- Mutual Thrift Tax
- Retalitory Fees under Section 212 of the Insurance Company Law of 1921 and/or
- Personal Income Tax - Started 2015-2016
What is the Difference Between the EITC, PKTC, & OSTC Programs?
Holy Child School at Rosemont is a Scholarship Organization as classified by the Commonwealth of Pennsylvania. Donations made to Holy Child through EITC and PKTC support all students living in low-income households throughout Pennsylvania. Donations given through the OSTC program support students from low-income households who also reside within the boundaries of a low-achieving school.
Tax Advantages to Businesses:
Tax credits equal 75% of a business' contribution up to a maximum of $750,000 for EITC and OSTC donations and $200,000 for PKTC donations. Tax credits may be applied against the tax liability only for the tax year in which the contribution is made.
The tax credit for the EITC and OSTC programs can increase to 90% if a business agrees to provide the same financial support for two consecutive tax years.
For the PKTC program, businesses may receive a 100% tax credit up to the first $10,000 and receive a tax credit equal to 90% for any additional amount donated - up to a maximum of $200,000 - per taxable year.
Remaining donations to any of the programs program (10% / 25%) may be eligible as a charitable donation on your federal tax return. Please consult your tax advisor for details and eligibility requirements.
Deadlines, Application, & Resources:
Deadlines for applications are published each March/April. Traditionally, all NEW applications are due around July 1 and renewal applications are due beginning May 15. In recent years, all funding has been allocated within hours/days of when the businesses are able to apply. Please check the OSTC/EITC/PKTC websites for additional details.
Process: Click here to go to the Department of Community and Economic Development's (DCED) website to apply online. Paper applications are no longer accepted.
Resources: The DCED provides detailed EITC, PKTC, and OSTC guidelines for businesses and instructions on how to apply. Please click on the links below for specific program information.