PA Tax Credit Programs

Turn your Tax Dollars into Tuition Assistance to Support TPS

Did you know that through the Pennsylvania Educational Improvement Tax Credit (PA EITC) and the Pennsylvania Opportunity Scholarship Tax Credit (PA OSTC), businesses and individuals in the Commonwealth can earn a tax credit for up to 90% of Pennsylvania taxes when they make a donation to a scholarship organization such as The Philadelphia School. Funds received under these programs provide direct support to our need-based tuition assistance program.

Our goal is to provide equal access to our progressive educational experience for children in the Philadelphia area. Every year, the number of students applying for financial aid increases and continues to exceed available funds. Even with close to $2 million in tuition assistance awarded each year, TPS is not able to meet the full need of all qualified students. Individual and corporate support, through EITC and OSTC donations, is essential to achieving this goal.

Please consider making a TPS education possible for more qualified students through these powerful programs. Learn about how your tax dollars can support TPS by reading this informational PDF.

Frequently Asked Questions

What are the EITC and OSTC Programs?

Contributions made through the Educational Improvement Tax Credit (EITC provide financial aid to students living in low-income households who attend an eligible scholarship organization, like TPS.

Contributions made through the Opportunity Scholarship Tax Credit (OSTC) program support TPS students from low-income households who live in neighborhoods with low-achieving public schools (bottom 15% in Pennsylvania).

While the target demographic for the programs differ, the tax benefits of these programs are exactly the same.

How do these programs work?

Tax credits are available on a first-come, first-serve basis for contributions to scholarship organizations such as The Philadelphia School. Credits may be applied against the tax liability for the tax year in which the contribution was made. Businesses and individuals may receive a tax credit equal to 75% of their contribution, up to a maximum of $750,000 per taxable year.

Participants who agree to make a contribution to TPS for two consecutive years may receive a tax credit equal to 90% of its contribution. It costs a dime to give a dollar!

How can I participate as an individual?

The Commonwealth of Pennsylvania allows individual taxpayers to participate in the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs. Individuals may now join a Special Purpose Entity (SPE) that allows personal tax liabilities to flow through it, allowing them to participate. Joining an SPE enables Pennsylvania taxpayers the ability to receive a credit up to 90% of the donation amount as well as a federal charitable tax deduction.

Step 1

Donor pays taxes in PA and wants to contribute to TPS through the EITC/OSTC programs.

They contact their tax professional to estimate their tax liability and the TPS Advancement Team team to get started.

Step 2

Qualified individuals fill out paperwork which takes less than 30 minutes and sends it along with a check to TPS. TPS receives 100% of this donation.

Step 3

Donor completes their tax return and several weeks later receives a tax credit for up to 90% of their donation. They may also receive additional credits on their federal tax return.

Step 4

Donor renews their commitment to the EITC program annually.

Note a minimum of a two year commitment and a contribution of $5,000 is advised.

How can my business participate?

The Pennsylvania Educational Improvement Tax Credit (EITC) and the Pennsylvania Opportunity Scholarship Tax Credit (OSTC) programs allow businesses in the Commonwealth to earn tax credits up to 90% of certain Pennsylvania taxes when they make a charitable donation to TPS. Funds under these programs provide direct support for need-based tuition assistance at TPS.

Businesses (including pass-through entities and special purpose pass-through entities) authorized to do business in Pennsylvania who are subject to one or more of the following taxes may apply for credits through the EITC and/or OSTC programs:

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 unauthorized, domestic/foreign marine)
Mutual Thrift Tax
Malt Beverage Tax
Surplus Lines Tax

All applications are now online through a single electronic application. Here is a guide with how to instructions.

EITC Single Electronic Application

Business Application Timeline

May 15 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 23/24 to renew their 2-year commitment.
May 15 – Businesses who are in the middle of their 2-year commitment.
July 3 – All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment. Note: this date is typically July 1 but has been adjusted this year until the next business day.

Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc., can now apply the same day as C-Corporations. Applications must be submitted electronically using DCED’s Single Application for Assistance. See the business application guide in the box above.

Please visit the Pennsylvania Department of Community and Economic Development website for more information, or contact us at advancement@tpschool.org.

Informational Webinar

Estimate Your Gift and Tax Benefit

We invite you to use the calculator below to estimate your possible gift to TPS through the PA Tax Credit program. Enter your taxable income in Pennsylvania and your filing status. This tool is for informational purposes only and we encourage you to consult your tax professional if you would like to enroll in the TPS PA State Tax Credit Program.

We’re proud to support the myriad ways TPS works to provide the best possible experience for ALL TPS students…EITC/OSTC is such an easy way to give back to TPS. Contributions are deeply impactful, providing a TPS experience for students who might not otherwise be able to attend.

Why I Give: The Harel Family

Want to learn more?

Email advancement@tpschool.org to reach a member of the Advancement Team.

Information provided by representatives of The Philadelphia School (TPS) or in TPS publications is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.

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