Scholarship Tax Credit Programs (EITC and OSTC)

What are the EITC and OSTC Programs?

Pennsylvania’s Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs enable the business community to invest directly in tomorrow’s workforce by turning tax dollars into scholarship funds. Under EITC and OSTC, businesses are credited for contributions to qualified Scholarship organizations, such as Community Partnership School (CPS), that provide much needed tuition assistance. With minimal or no additional costs, businesses like yours and others can impact the lives of children seeking a better future through education.

Why Consider CPS?

Community Partnership School is a unique organization– an independent school serving low-income, low-wealth families. The need for scholarship support is greater than ever now, as all of our families qualify for tuition assistance. Unlike public or charter schools, we don’t receive public funding, and unlike traditional private schools, we don’t have an alumni donor base. Nor are we tuition-driven, as tuition payments by families account for only 5% of our budget. The balance is supported by the generosity of private donors – individuals, foundations and corporations that invest in the CPS model for urban education reform.

How Does EITC/OSTC Work?

Businesses will be approved for a tax credit equal to 100% of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually if it donates to CPS as a Pre-Kindergarten Scholarship Organization via the EITC program. If donating to CPS as a Scholarship Organization through EITC and/or OSTC, businesses will be approved for a tax credit equal to 75% of its contribution, up to a maximum of $750,000 per taxable year. The tax credit may be increased to 90% of the contribution made if the business agrees to provide the same amount of contribution for two consecutive tax years.

Educational Improvement Tax Credit and Opportunity Scholarship Tax Credit to Increase.

Legislation is preparing to increase the amount of tax credits available under the Educational Improvement Tax Credit (EITC) program by $50 million (to $175 million), in addition, the amount of tax credits available under the Opportunity Scholarship Tax Credit (OSTC) program by $25 million (to $75 million), to grow school choice opportunities and help more students escape from failing schools. Educational Improvement Tax Credit and Opportunity Scholarship Tax Credits to Increase!

Who Can Participate?

Your business qualifies if it pays one or more of these taxes in Pennsylvania.

  • Bank and Trust Company Shares Tax
  • Corporate Net Income Tax
  • Mutual Thrift Institution Tax
  • Capital Stock Franchise Tax
  • Insurance Premiums Tax
  • Title Insurance Companies Shares Tax
  • Personal Income Tax of S Corporation shareholders/partners
How Do I Apply?
  • Visit www.newpa.com and click on “Single Application” for the application.
  • EITC applications will be reviewed on a first-come, first-served basis beginning July 1. OSTC applications are reviewed on an ongoing basis until funding runs out.
  • Make checks payable to “Community Partnership School,” send email to info@communitypartnershipschool.org.
  • CPS will send you an acknowledgement letter, which you then send to the Commonwealth of Pennsylvania as proof of contribution.

For more information call the Advancement Office at 215-235-0461.