Educational Improvement Tax Credit (EITC) & Opportunity Scholarship Tax Credit (OSTC)
Help support financial aid at TPS and reduce your tax liability at the same time!
"EITC and OSTC are great ways to support TPS. Instead of paying my tax dollars to the State of Pennsylvania, the program allows me to give the money to TPS instead, where I know it will be used to support our financial aid program."
Sounds too good to be true? It isn’t! With both of these programs, business can receive a 75% state tax credit or a 90% state tax credit. In addition, business owners can claim a charitable deduction for the difference between the tax credit amount and the gift. For example, if you donate $5,000 to TPS each year for two years, you receive a tax credit of $4,500 per year, plus the ability to claim $500 as a charitable deduction. You can donate any amount up to $400,000!
The Educational Improvement Tax Credit program (EITC) allows qualified businesses to fulfill their state tax burden while supporting financial aid at TPS. The Opportunity Scholarship Tax Credit program (OSTC) allows qualified businesses to fulfill their state tax burden while supporting low-income students who reside in low-achieving school districts in Pennsylvania.
Do You Qualify?
Are you one of the following? If you answered yes, you do!
* Partnerships can split a gift among several EITC-approved nonprofits.
Want to double check if you qualify? If you pay one of the following taxes, you do!
Your credits get approved before you make a donation, and 100% of your donation will go directly to financial aid. TPS does not take any administrative fees or overhead costs out of your donation.
To apply: You can download the EITC application here (funds for this year have already been exhausted): EITC Application for Credits; or apply online for OSTC (there is still $40 million in funds available!) funds here: http://newpa.com/find-and-apply-for-funding/apply-for-programs-funding. We are happy to walk you through the process if you need any assistance.
Applications for EITC may be received by the PA EITC Office beginning July 1 every year. EITC is awarded on a first-come, first-served, basis. All applications are due on July 1(early applications arriving at the PA EITC office will be returned to sender for re-application. Applications for OSTC are being accepted on a rolling basis. For assistance with applying, please contact Dana Marcus, Director of Institutional Advancement at firstname.lastname@example.org or 215-545-5323, ext 227.
What is the Educational Improvement Tax Credit?
The Educational Improvement Tax Credit (EITC) provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization. The tax credit increases to 90% if the company commits to making the same donations for two consecutive years. A business paying taxes in Pennsylvania can receive up to $300,000 in tax credits annually. EITC provides low-income children and families, who reside in Philadelphia, with much needed tuition assistance. Help to make a TPS education possible for more Philadelphia families!
What is the Opportunity Scholarship Tax Credit?
Modeled after the popular EITC program, the Opportunity Scholarship Tax Credit (OSTC) program provides financial aid support to children who live within the attendance boundaries of Pennsylvania's worst performing 15% of schools. Unfortunately, there are over 150 such schools in the city of Philadelphia alone. Just like the EITC program, the OSTC program awards Pennsylvania businesses a tax credit of 75% if the gift is made for one year or 90% if the company commits to making the same donations for two consecutive years. OSTC funds are available in addition to any credits received under the EITC program. If you qualify for EITC, you also qualify for OSTC. The Philadelphia School is an approved scholarship organization for OSTC.
EITC supports the TPS financial aid budget; OSTC supports a specific child in need of resources to attend TPS.
Thank you for your support of TPS and the children we serve.