EITC FAQs 

What are the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC)? 

This program provides tax credits to eligible businesses or individuals contributing to scholarship organizations and educational improvement organizations, in order to promote expanded educational opportunities for students in Pennsylvania.

In layman’s terms – you can direct YOUR tax dollars to support PCS’s innovative educational programs.

 

What is the timeline for applying for this tax credit?

Renewing businesses (those that have participated before) can begin applying May 15 and have until June 28. New businesses are able to apply July 1.

Who can make EITC/OSTC gifts?

Companies in PA that pay any of the following taxes qualify to participate in the EITC/OSTC program:

  • 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 surplus lines, unauthorized, domestic/foreign marine)

  • Mutual Thrift Tax

  • Malt Beverage Tax

  • Retaliatory Fees under section 212 of the Insurance Company Law of 1921

Individuals who meet either the Income Test or Net Worth Test:

Income Test

  • Your individual income must have exceeded $200,000 in each of the two most recent years or your joint income together with your spouse exceeded $300,000 in each of those years, AND

  • You reasonably expect to earn individual income of at least $200,000 this year or joint income with your spouse of at least $300,000 this year

To learn more, please visit the EITC & OSTC Frequently Asked Questions page.