PA Tax Credit Programs
EITC and OSTC
Did you know that through the Pennsylvania Educational Improvement Tax Credit (PA EITC) and the Pennsylvania Opportunity Scholarship Tax Credit (PA OSTC), businesses and individuals in the Commonwealth can earn a tax credit for up to 90% of certain Pennsylvania taxes when they make a donation to a scholarship organization such as The Haverford School. Funds received under these programs provide direct support to our need-based tuition assistance program. Please consider making a Haverford experience possible for more qualified students through these powerful programs.
How do these programs work?
Tax credits are available on a first-come, first-serve basis for contributions to scholarship organizations such as The Haverford School. Credits may be applied against the tax liability for the tax year in which the contribution was made. Businesses and individuals may receive a tax credit equal to 75% of their contribution, up to a maximum of $750,000 per taxable year. Participants who agree to make a contribution to Haverford for two consecutive years may receive a tax credit equal to 90% of its contribution. In effect, it costs a dime to give a dollar!
- What businesses and taxes are eligible?
- I don't own a business. Am I still eligible?
- What is the difference between EITC and OSTC?
- How can I apply for EITC and OSTC?
- What happens after I apply?
Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes may apply for EITC and/or OSTC:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921
Some individuals may now be eligible for tax credits that were previously available only to businesses, and an increasing number in The Haverford School community have been taking advantage of this new opportunity. The tax benefit for individuals is the same as for businesses, but the process to apply for the credits slightly different. For more information, next steps, or to connect with a Haverford School family who participates in PA State Tax Credit Programs through personal taxes, contact Matt Nierenberg at 484-417-2794 or firstname.lastname@example.org.
The EITC program provides tuition assistance support to qualified students from low income households. The OSTC program is slightly more restrictive, in that the students must also live in school districts ranked in the bottom 15% in Pennsylvania. The tax benefits of these programs are exactly the same.
Applications for returning businesses are accepted online beginning May 15. Applications from businesses new to these programs are accepted online beginning July 1. Please note that applications are accepted on a "first come, first served" basis, and EITC in particular runs out of funds quickly, so it is important for new businesses to submit on July 1.
The Department of Community and Economic Development (DCED) will send an approval letter to businesses that have been awarded tax credits. Please note that the timing of these letters varies from year to year. We will be in contact with businesses who have let us know about their application when there are any updates from DCED.
From the time the letter has been received from DCED, the business has 60 days to send its philanthropic contribution to The Haverford School.
The Haverford School will issue a gift acknowledgement receipt which the business must send to the DCED within 90 days of the original approval letter. After sharing this written acknowledgement with the DCED, the business will receive the amount of tax credits outlined in the original approval letter.
Matt NierenbergMajor Gifts Officer
Businesses who have fulfilled their two-year commitment can reapply for a new two-year commitment.
Businesses in the middle of their two-year commitment can renew for a second year.
All other businesses including initial applicants can submit their applications.
The greatest gift I have ever been given is the opportunity to get an education like the one I am getting at Haverford. My life has been transformed entirely for the better. My greatest hope is that Haverford continues to receive support so more boys like me - boys just as worthy and deserving of this wondrous opportunity - can receive the same education, so more lives can be transformed. Jose Martinez '17