EITC and OSTC State Tax Credits

The Commonwealth of Pennsylvania offers two tax-credit programs that make it possible for businesses to redirect their tax dollars to Penn Charter for financial aid. The application process is easy, and the benefits to the school and to deserving students are significant.

What are EITC and OSTC? 

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 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 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.

Corporations and individuals may also work with BLOCS to provide charitable donations to Penn Charter. BLOCS, or Business Leadership Organized for Catholic Schools, bridges the business community and schools to expand funds available for financial aid by facilitating EITC and OSTC gifts. BLOCS supports independent schools, as well as Catholic Schools, and works closely with Penn Charter. 

Eligibility

Eligible businesses must be authorized to operate in Pennsylvania and subject to 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 and Personal Income Tax of S Corporation Shareholderes, or partners in a general or limited partnership 

Benefits to Penn Charter

Penn Charter seeks to be a richly diverse school community: racially, religiously, economically, ethnically and socially. In our curriculum, we work to widen our embrace of a plurality of cultures and to celebrate the voices of both women and men. The EITC and OSTC programs offset financial aid expenses, helping Penn Charter maintain and increase its diversity.

In the 2017-18 school year, more than $1.8 million was gifted to Penn Charter through the EITC and OSTC programs, supporting more than 170 Penn Charter students. This money significantly alleviated the school's financial aid budget and made it possible to fund other projects and improvements throughout the school.

Get Involved

Simply complete the online application at newpa.com. Two to three weeks later, you will hear whether you have been approved to join the program.

For more information and application assistance, please contact Jack Rogers at 215-844-3460, ext. 111 or jarogers@penncharter.com.

 

Donor Stories

Jumping to Support Financial Aid

Pennsylvania's Opportunity Scholarship Tax Credit (OSTC) provides Penn Charter’s mission-driven financial aid program with significant revenue every school year.

  • Donor Profile
  • EITC
  • Financial Aid
  • OSTC
  • Public Purpose
  • Quakerism