Giving Tax Credits

Educational Improvement Tax Credit (EITC) Program

What is the Educational Improvement Tax Credit (EITC)?

Tax credits to eligible businesses contributing to a Scholarship Organization, an Educational Improvement Organization, and/or a Pre-Kindergarten Scholarship Organization. Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made.

What is the Opportunity Scholarship Tax Credit (OSTC)?

The 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 PSSA scores.

Funding

Tax credits equal to 75% of its contribution up to a maximum of $400,000 per taxable year. Can be increased to 90% of the contribution if business agrees to provide same amount for two consecutive tax years. For contributions to Pre-Kindergarten Scholarship Organizations a business may receive a tax credit equal to 100% of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $200,000 annually.

Eligibility

Businesses authorized to do business in Pennsylvania who 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
  • Insurance Premiums Tax
  • Mutual Thrift Institution Tax
  • Personal Income Tax of S corporation shareholders or Partnership partners

To learn more or find out how to apply on behalf of SSES, please read our EITC Informational Brochure and Special Purpose Entities FAQ.