Pennsylvania Tax Credits
The Education Improvement Tax Credit (EITC), Opportunity Scholarship Tax Credit (OSTC) and the Pre-Kindergarten Tax Credit (PKTC) were created by the Commonwealth of Pennsylvania as a means to giving contributions to Scholarship, Educational Improvement and/or Pre-K Scholarship organizations. The programs are administered by the Department of Community and Economic Development.
Businesses and individuals donating to the scholarship fund will receive a tax credit to offset up to 90% of the donation. Through the EITC, OSTC and PKTC programs, a business or individual can receive a dollar-for-dollar tax credit for up to 90% of a donation to help a low-income student attend a Friends school. Combined with federal tax savings, the out-of-pocket costs can be little or nothing. This is a first-come, first-served program.
EDUCATIONAL IMPROVEMENT TAX CREDIT (EITC)
Launched by the Pennsylvania legislature in 2001, the EITC Program offers tax credits to individuals and corporations for donating to organizations that provide low- and middle-income families private school and prekindergarten scholarships, as well as to organizations that support innovative public school programs. The EITC program allows members to receive up to a 90% tax credit against their personal Pennsylvania state tax liability.
OPPORTUNITY SCHOLARSHIP TAX CREDIT (OSTC)
Launched in 2012-13, the PA OSTC program provides funding to organizations to distribute in the form of scholarship awards to eligible students and families residing within the attendance boundary of a low-achieving public school. The scholarship awards allow eligible students to attend a private school or public school outside of their district of residence.
PRE-KINDERGARTEN SCHOLARSHIP TAX CREDIT (PKTC)
The PKTC Program allows for contributions to Pre-Kindergarten programs (for children three to six years of age) that utilize a curriculum consistent with the school. The school provides need-based scholarships for students.