PA TAX CREDIT PROGRAMs
Benefits Your Company and The Perkiomen School
A gift to The Perkiomen School can provide your company with a substantial tax credit through the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) Programs. By making a contribution to Perkiomen’s scholarship fund, your company can save in Pennsylvania tax as much as 90% of the value of a gift of up to $750,000. Please take a few moments to review this opportunity with your company’s tax advisor. Your support of Perkiomen through the EITC and OSTC programs will help the school make its educational experience available to Pennsylvania’s most capable students no matter their financial situation.
How do these programs work?
EITC and OSTC provide funds to The Perkiomen School to be used for financial aid for Pennsylvania students. EITC is available to all qualified Pennsylvania students while OSTC specifically provides support to students from low-achieving school districts so that they may attend institutions that will help them reach their full potential, such as The Perkiomen School.
Eligible businesses use the online application and upon approval make a gift to the school. Once proof of the gift is sent to the State, the tax credits will be issued to you. If your business commits for 2 years, you will receive a tax credit worth 90% of your total gift. You will receive a tax credit worth 75% of your gift if you decide to participate for 1 year.
How do I know if I’m eligible?
Your business can contribute and benefit from the tax credit if your company operates in Pennsylvania and expects to pay:
- PA Corporate Net Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Tax
- Title Insurance Tax
- Insurance Premiums Tax or Mutual Thrift Institutions Tax
- Personal Income Tax: S corporations, partnerships and other "pass through" businesses may choose the “pass through” option where the tax credit is applied to shareholders, members, partners or the business owner.
How do I apply for EITC/OSTC tax credits?
Simply apply to the Pennsylvania Department of Community and Economic Development for the EITC and OSTC programs using the Single Application for Assistance available on their website. Simply click here and get started. Their website also provides helpful information to help you make your decision. You may also call their offices at 717-787-7120.
When should I apply?
The timeline depends on whether or not you are a new applicant:
- If you have never applied for EITC or OSTC tax credits before, or if it has been at least 1 year since you were involved in the EITC/OSTC programs, then your application for tax credits should be submitted on July 1, 2014.
- Applicants in the middle of a 2-year commitment or who are finishing year 2 of 2 and wish to begin a new 2-year commitment may reapply May 15, 2014.
All applications are accepted on a first-come, first-served basis according to the submission date and are sorted randomly. Applications are approved until the amount of available tax credits is exhausted. Please note that applications submitted after July 1 may be wait-listed or denied due to lack of available tax credits.
Can I apply to both programs or do I have to choose just one?
While the application process is essentially the same for both programs, the budgets for EITC and OSTC are separate from one another, meaning businesses may apply for BOTH programs within a given year. If you are interested in applying for both EITC and OSTC tax credits, you do have to complete both applications.
Are you interested or would you like more information about EITC/OSTC at The Perkiomen School?
You are invited to speak with John Spurlock, Director of The Perkiomen Fund, by phone at 215.679.1157 or through email at email@example.com.