The Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs 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 within the Diocese of Allentown. Every dollar received by EPSF is awarded to students attending Catholic elementary and secondary schools, special learning centers, and pre-school programs 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. The maximum credit cannot exceed $750,000 per taxable year.
Businesses authorized in Pennsylvania who are subject to one or more of the following taxes are eligible to apply to either the EITC or OSTC program:
- Corporate Net Income Tax
- Mutual Thrift Institution Tax
- Capital Stock Franchise Tax
- Title Insurance Companies Shares Tax
- Bank and Trust Company Shares Tax
- Insurance Premium Tax
- All Sub-Chapter S Corporations and other “pass through”
- Upon receiving approval from Department of Community and Economic Development, you have 60 days to make your contribution to the Eastern Pennsylvania Scholarship Foundation.
- After receiving an acknowledgment letter you have 90 days to send proof of your contribution to DCED.
- 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
- Must apply on July 1st
- All applications must be submitted electronically and are processed on a first come-first served basis by day submitted
- Applications will be approved until the amount of available tax credits is exhausted
Businesses Looking to Renew
- For an additional two year commitment, businesses can begin applying on May 15th.
- Businesses renewing will automatically qualify
Additional program guidelines can be found at by clicking here or by contacting the Program Manager of Scholarships for the Diocese of Allentown.