PA Tax Credit
Educational Improvement Tax Credit Program
and Opportunity Scholarship Tax Credit Program
The Pennsylvania DCED has created an electronic application to enhance the ease with which your business can apply to turn your PA tax burden into scholarships for deserving Meadowbrook School students.
Complete your Single Application for Assistance today. Paper business applications will no longer be accepted. All the information you will need to register is outlined in the OSTC-EITC Handbook available at www.newpa.com .
Please contact the Office of Institutional Advancement for application assistance.
OSTC : Opportunity Scholarship Tax Credit Program
This new Opportunity Scholarship Tax Credit program introduced in 2012 is another incredible way for businesses to turn their PA tax burden into scholarships. Unlike EITC which in the past has been claimed within a week of the July 1 application deadline, requests for the available $50 million OSTC tax credits have been coming in very slowly.
Here are some key points about Meadowbrook and OSTC:
- Over 10% of Meadowbrook’s total enrollment qualifies to receive OSTC support; that means that if not at Meadowbrook and receiving scholarship support, the public education option for these students would be the 15% lowest performing schools in Pennsylvania.
- Businesses can apply to both EITC and OSTC in the same year to a maximum of $400,000 each.
- The time for all businesses to apply to turn their tax burden into OSTC scholarships is now! If businesses do not take advantage of this fantastic new OSTC program, it is unlikely that it will survive for future years.
Below are the highlights of the OSTC program:
- For complete information from the Commonwealth on the OSTC program, click here .
- Complete Guidelines for Businesses are available here . You must apply online for this program. To begin the online-only application process, click here . Please contact the Office of Institutional Advancment for help with this process.
- The following taxes qualify: Corporate Net Income Tax · Capital Stock Franchise Tax · Bank and Trust Company Shares Tax · Title Insurance Companies Shares Tax · Insurance Premiums Tax or Mutual Thrift Institutions Tax or a tax under Article XVI of the Act of May 17, 1921 (Insurance Company Law of 1921)
- In addition to the $400,000 allowed under the EITC program, companies can apply with the Department of Community and Economic Development (DCED) for up to $400,000 in OSTC tax credits.
- Tax credits are issued on a first come, first served basis. Be sure to act fast!
We are pleased that families of qualified students have another resource to access the quality education Meadowbrook provides. We hope that you will join us in spreading the word about this life changing opportunity.
EITC: Educational Improvement Tax Credit Program
20% of Meadowbrook’s total enrollment qualifies to receive EITC support. That represents a need of over $200,000. Please consider turning your PA tax burden into scholarships for deserving students to attend Meadowbrook.
Corporations (both “C” and “S”) can significantly reduce their Pennsylvania state tax liability by receiving tax credits for donations to state-approved scholarship organizations such as Meadowbrook. Meadowbrook also qualifies as a Pre-K scholarship organization which gives a 100% tax credit for businesses. Owners of sub-chapter S corporations, partnership partners, and other small and medium-sized business that pay personal income tax on PA business income can fully participate in the program as well.
Corporations and business owners can choose to provide needs-based scholarships to lower and middle income families attending Meadowbrook. The Educational Improvement Tax Credit (EITC) program has $100 million in tax credits to distribute in to corporations and business owners for scholarship programs that serve private schools.
Entities authorized to do business in Pennsylvania who are subject to one or more of the following taxes are eligible to participate in the EITC Program:
- 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 now
- Personal Income Tax of S Corporation Shareholders and
- Partnership Partners
Participants in the EITC program may receive a state tax credit for up to 75% of their contribution up to a maximum of $400,000 per taxable year; the credit can be increased to 90% of the contribution, if the corporation or business owner agrees to provide the same amount for two consecutive tax years.
Participants that make donations to Meadowbrook can also claim a charitable tax deduction on their federal tax return.
How can I apply?
Applications must be submitted electronically using DCED’s Single Application for Assistance . Paper business applications will no longer be accepted. For details and instructions, see the Business Application Guide or visit www.newpa.com (search "EITC Guidelines").
Thank you to those businesses who have supported Meadowbrook through this easy and rewarding program.