Education Improvement Tax Credit (EITC) & Opportunity Scholarship Tax Credit (OSTC)

Make an impact on OLSH students and earn a tax credit!

If you own or work for a company that pays corporate taxes to the state of Pennsylvania, your company can direct tax dollars to scholarships for OLSH students in need!  Pennsylvania's EITC and OSTC programs are simple opportunities for businesses to do good by supporting education and earn up to a 90% tax credit!  The application is simple and we are happy to help you through the process.

If you are an individual who meets certain eligibility requirements, the state of Pennsylvania now offers the opportunity for individuals to direct their tax dollars through the EITC and OSTC programs.  Contact VP for Advancement Cheryl Karashin at (412) 269-7726 or ckarashin@olsh.org to learn more about individual opportunities for giving to EITC/OSTC.

FAQs about EITC/OSTC

What are the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC)?
This program provides tax credits to eligible businesses or individuals contributing to scholarship organizations and educational improvement organizations, in order to promote expanded educational opportunities for students in Pennsylvania.

In layman’s terms – you can direct YOUR tax dollars to support OLSH’s financial aid program.

What is the timeline for applying for this tax credit?
Renewing businesses (those that have participated before) can begin applying May 15 and have until June 28. New businesses are able to apply July 1.

Who can make EITC/OSTC gifts?
Companies in PA that pay any of the following taxes qualify to participate in the EITC/OSTC 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
• Insurance Company Law of 1921
• Personal Income Tax of S corporation shareholders or Partnership partners

Individuals who meet either the Income Test or Net Worth Test:

Income Test

• Your individual income must have exceeded $200,000 in each of the two most recent years or your joint income together with your spouse exceeded $300,000 in each of those years, AND
• You reasonably expect to earn individual income of at least $200,000 this year or joint income with your spouse of at least $300,000 this year

• Your individual or joint net worth exceeds $1,000,000

How much money has the state set aside for this program?
The State of PA has allocated $100 million in the state budget for the EITC program and $50 million for the OSTC program.

How do I apply?
Talk with your business' finance office, accountant, and/or tax professional to determine your eligibility and the dollar amount to be donated. All applications are completed online and can be accessed at www.newpa.com/EITC. Contact the OLSH Advancement Office to review details related to your participation with OLSH at (412) 269-7726 or advancement@olsh.org. 

What should I do if the EITC/OSTC funds become fully exhausted?
Contact the OLSH Advancement Office for information on other PA tax credit opportunities.