Businesses that are authorized to do business in Pennsylvania, and which are subject to certain Pennsylvania taxes, are eligible to receive tax credits under the Educational Improvement Tax Credit program (EITC) and the Opportunity Scholarship Tax Credit program (OSTC) for contributions of cash, personal property or services to scholarship programs, educational improvement organizations, pre-kindergarten scholarship organizations or opportunity scholarship organizations approved by the Pennsylvania Department of Community & Economic Development.
The EITC program offers a tax credit of between 75% and 90% of the value of the contribution to scholarship programs or educational improvement organizations, limited to $750,000 per taxable year. For contributions to pre-kindergarten scholarship organizations, the EITC program offers a tax credit of 100% of the first $10,000 and 90% of any additional amount up to maximum of $200,000 per taxable year.
Similarly, the OSTC program offers a tax credit of between 75% and 90% of the value of the contribution to opportunity scholarship programs, limited to $750,000 per taxable year.
Businesses interested in obtaining the EITC or OSTC tax credits must apply with the Pennsylvania Department of Community & Economic Development beginning July 3, 2017.
Rebecca O’Neill is the newest member of the Business, Commercial and Taxation practice group at Grim, Biehn & Thatcher. Contact Attorney O’Neill today to learn more about tax credits for your business.