What are the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit programs?
The EITC program
was established by Act 4 (H.B. 996, P.N. 1878, Session 2001), potentially allowing businesses to significantly reduce their state tax liability (e.g., 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) by contributing/donating (cash, personal property, or services) to a nonprofit educational improvement or nonprofit scholarship organization. EITC Business Guide
The OSTC program
provides tax credits to eligible businesses contributing to an Opportunity Scholarship Organization. Business contributions are then used by Opportunity Scholarship Organizations to provide tuition assistance in the form of scholarships to eligible students residing within the boundaries of a low-achieving school to attend another public school outside of their district or nonpublic school
. A low-achieving school is defined as a public elementary or secondary school ranking in the bottom 15 percent of their designation as an elementary or secondary school based upon combined math and reading Pennsylvania System of School Assessment (PSSA) scores. OSTC Business Guide
The EITC and OSTC programs are administered by the Department of Community and Economic Development (DCED)
on a first-come-first-serve basis. Nazareth Academy Grade School is listed with the PA Dept. of Education as an OSTC Non-public School Participant, meaning that children living in the neighborhood of a low performing public school can bring their scholarships funding to NAGS.
How does this program benefit Nazareth Academy Grade School?
Nazareth seeks to be a richly diverse school community: racially, religiously, economically and socially. The EITC and OSTC offsets financial aid expenses, helping NAGS maintain and increase its diversity. Businesses and individuals participating in EITC and OSTC help Nazareth offset financial aid expenses, helping NAGS maintain our facilities and enhance our curriculum.
Business application timeline:
May 15 - Businesses applicants who have fulfilled their 2-year commitment and wish to reapply to renew their two year commitment.
May 15 - Businesses who are in the middle of their two year commitment
July 1 - All other new business applications, including Pre-K business applications