Pennsylvania Tax Credit Programs
The Commonwealth of Pennsylvania offers two tax-credit programs that make it possible for businesses to redirect their tax dollars to Friends Select for financial aid. The application process is easy, and the benefits to the school and to deserving students are transformational.
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 School 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 Friends Select'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.
EligibilityEligible 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.
Financial aid is inextricably linked to Friends Select's overall mission to provide an outstanding, college preparatory education to a culturally and economically diverse student body in the heart of Center City Philadelphia. The financial support received through the EITC and OSTC programs has tremendously impacted the school’s ability to offer financial aid grants to as many deserving students as possible.
Benefits to Friends Select
How to Apply
Simply complete the online application at newpa.com. In approximately two weeks you will hear from the DCED about whether you have been approved to participate. If you have any further questions please contact Chris Jefferson, Director of Development and Alumni/ae Relations, at 215-561-5900 ext. 3141 or firstname.lastname@example.org.
Ceisler Media & Issue Advocacy Comcast Corporation
LJG Inc. OnSite Innovations, Inc.
Philip Rosenau Company, Inc.
PNC Financial Services Group Bank
UGI Energy Services LLC
Universal Health Services of DE, Inc. (UHS)
Utica National Insurance Group
Wolfe Scott Associates, Inc.
The EITC program is an amazing vehicle businesses can use to allocate their Pennsylvania taxes to the nonprofit school of their choice. It’s empowering to know that I’m the one to decide where my tax dollars go, and I’m happy to support Friends Select.
- Tony Sovinski P'23 (Real estate investment business owner, EITC donor)