Tax-Credit Giving

Enacted by the Pennsylvania legislature in 2001, the Educational Improvement Tax Credit (EITC) provides a tax credit to businesses that pay Pennsylvania's corporate income tax or individuals who pay Pa. income tax for contributions to scholarship organizations that give private-school scholarships to eligible children. 

In August 2012, Pennsylvania created a second program – the Opportunity Scholarship Tax Credit (OSTC) – to offer further support for students whose neighborhood public school is low-achieving. The same eligibility requirements for businesses and individuals apply to OSTC as EITC. 

Some individuals who pay Pennsylvania income tax are able to designate part or all of their tax liability via a "special purpose entity," or SPE, to make a gift to financial aid at Penn Charter. SPEs are a vehicle for non-business owners to participate in philanthropy via EITC or OSTC. Penn Charter has two SPEs, and can receive gifts of financial aid from larger organizations who facilitate tax-credit gifts on behalf of many individuals for multiple schools. 

My business operates in Pa. and pays one or more of the following taxes:

• Corporate Net Income Tax
• Capital Stock Franchise Tax
• Bank and Trust Company Shares Tax
• Title Insurance Companies Shares Tax
• Insurance Premiums Tax
• Mutual Thrift Institution Tax
• Personal Income Tax of S Corporation Shareholders, or partners in a general or limited partnership.

Or,

I am an individual and have:

• a Pennsylvania tax liability

and

• accreditor investor status 

Businesses
The EITC and OSTC programs enable a Pennsylvania business to direct up to $750,000 of its Pennsylvania state tax dollars directly to Penn Charter's scholarship program. Tax credits are given for 75 percent of a one-year gift and 90 percent of gifts given in two consecutive years.

Individuals

Similarly, individuals can designate up to 90% of their Pa. tax liability.