Pennsylvania Tax Credit Programs for Business Owners
Pennsylvania Tax Credit Programs: EITC and OSTC
The Pennsylvania Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) programs allow a business owner to take a credit against PA taxes for up to 90% of the amount donated to The Crefeld School.
Anyone who pays:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921
Typically, these taxes are paid by Corporations, Partnerships, LLCs, Banks, Insurance Companies, Title Companies, and Mutual Thrift Companies. Partnerships can split a gift among several EITC/OSTC-approved nonprofits.
How does this work?
For businesses seeking to submit an application, please adhere to these dates. If you submit on even just one day earlier, your application will be denied as the state will read it as applying for the previous year and those funds have already been spoken for:
- May 16, 2017 as a renewing participant (either the 1st year of a new 2 year commitment or the 2nd year of a 2 year commitment). Participation in the program must be continuous in order to submit your application on May 16.
- July 1, 2017 as a new participant – also if your business is returning from a hiatus in participation. If you submit any time after July 1st, you will most likely not be approved this year as the last of the funds are usually distributed to July 1 applicants.
- Go to this link for more information about EITC and go to this link for more information about OSTC Business Guidelines.
- Credits are issued on a first-come, first-served basis.
- You will be notified by the state of PA of your acceptance if you qualify.
- Make your contribution to Crefeld within 60 days of acceptance and send proof of your contribution to the state.
- EITC/OSTC contributions support The Crefeld School’s scholarship program, which offsets the cost of education for members of our student body who would otherwise not be able to attend Crefeld.
Print out this webpage and bring it to your tax preparer to discuss this program. S/he can guide you through the process. For more information, please visit http://www.newpa.com or contact Joan Giannobile at The Crefeld School at 215.242.5545, ext 42 or firstname.lastname@example.org.