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EITC/OSTC

Tax Credits


Learn more about these PA Tax Credit Programs for Business and Individuals

What is EITC?

The Educational Improvement Tax Credit (EITC) provides companies with a 75% tax credit for donations to a non-profit scholarship or educational improvement organization, such as a school. The tax credit increases to 90% if a commitment to making the same donations for two consecutive years is made. A business paying taxes in Pennsylvania can receive up to $750,000 in tax credits annually. EITC provides low-income Pennsylvania children and families with much needed tuition assistance.

What is OSTC?

Modeled after the popular EITC program, the Opportunity Scholarship Tax Credit (OSTC) program provides tuition assistance to children who live within the attendance boundaries of Pennsylvania’s worst performing 15% of schools. 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 and you can apply for both programs at the same time with a short application.

Our Administrative Partners at BLOCS

SPS offers tuition assistance annually to approximately 25% of families. Many of these families are in the boundaries of an underperforming school district, which gives us flexibility in accepting EITC or OSTC. We, along with many local independent schools, partner closely with Business Leadership Organized for Catholic Schools (BLOCS) to manage and receive our EITC/OSTC funds. BLOCS is an experienced, long-standing participant in the program and we are grateful for their assistance.

Eligibility and How to Apply

EITC and OSTC are open to any business that pays PA taxes and individuals making over a certain income threshold (approximately $165,000). There is generally a minimum capital commitment upfront of $5,000 per member, however the overall out of pocket cost starts at around $315, after the tax credits and reductions are realized. See sample tax calculations (pulled from the BLOCS website) below:

“In just thirty minutes, I was able to direct state income tax payments through the Pennsylvania EITC program to support St. Peter’s School. Knowing that these funds are going to a place where we have a vested interest and still getting all of the tax benefits is a win/win.”

– Jake Hollinger P ’27 ’30, SPS Board Member

Questions?

Please contact Elizabeth Isanuk P ’32, Director of Advancement, at 215.297.3098 or eisanuk@st-peters-school.org to be connected with our partners at BLOCS, who will answer questions and help guide you through the application process.

Information provided by representatives of SPS or in SPS publications is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor.