Thank you to Martin M. Sacks & Associates, CPAs for their generous EITC donation!

 

Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) Programs

  • Both the EITC and OSTC Programs allow qualifying businesses in PA to redirect a portion of its state tax funds to educational foundations of its choice.
  • C-Corporations and pass-through entities, such as S-Corporations, partnerships, LLC’s, etc., are all eligible to participate!
  • Your business’ redirected tax dollars can serve as transformative tuition scholarships.
  • Many participating businesses also receive a deduction on federal taxes.
  • A business receives a 75% tax credit for a one-year commitment and a 90% tax credit for a two-year commitment.
  • Eligible businesses qualify if it pays one or more of the following state taxes:
    • Personal Income Tax
    • Capital Stock / Foreign Franchise Tax
    • Corporate Net Income
    • 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
  • Check with your accountant to see whether your business qualifies. Then contact Kelly Rogers, Director of Advancement at SCLS: krogers@sclhbg.org

Special Purpose Entity (SPE)

Individuals now have the opportunity to participate fully in the EITC and OSTC Programs by joining a Special Purpose Entity. Qualifying individuals must:

  • Earn yearly income of at least $115,000 and owe at least $3,500 in state income taxes (receive W-2 wages from a for-profit business or own a for-profit business)
  • Benefits include:
    • PA tax credit for up to 90% of the SPE commitment (must renew annually)
    • Federal charitable tax deduction of at least 10% (possibly more) of the federal charitable donations deduction
    • Check with your accountant to see if you qualify. Then contact Kelly Rogers, Director of Advancement at SCLS: krogers@sclhbg.org