EITC AND OSTC PROGRAM INFORMATION FOR BUSINESSES
The Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) provide tax credits to eligible businesses contributing to the Eastern Pennsylvania Scholarship Foundation (EPSF). Business contributions are then used by the Foundation to provide tuition assistance in the form of scholarships to eligible students attending schools located within the Diocese of Allentown. Every dollar received by EPSF from area businesses is awarded to students attending Catholic elementary, secondary and pre-schools in the Diocese of Allentown.
Tax credits may be applied against the state tax liability of a business for the tax year in which the contribution was made. For a two year commitment a business can receive a 90% tax credit and for a one year commitment a business can receive a 75% tax credit. The maximum credit cannot exceed $750,000 per taxable year.
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes are eligible to apply to either the EITC or OSTC program: Personal Income Tax, Capital Stock/Foreign Franchise Tax, Corporate Net Income Tax, Bank Shares Tax, Title Insurance & Trust Company Shares Tax, Insurance Premiums, Mutual Thrift Tax, Malt Beverage Tax, Retaliatory Fees Under Section 212 of the Insurance Company Law of 1921.
An approved business must provide proof to the Department of Community and Economic Development (DCED) within 90 days of the notification letter that the contribution was made within 60 days of the notification letter. Tax credits not used in the tax year the contribution was made may not be carried forward or carried back.
HOW TO APPLY
First year businesses can begin applying for either EITC or OSTC on July 1st. Second year or businesses renewing for additional one or two year terms, can begin applying on May 15th. All applications must be submitted electronically and are processed on a first come-first served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.
Additional program guidelines can be found at www.newpa.com or by contacting the Scholarship Administrator for the Diocese of Allentown.