As seen in Philadelphia Business Journal
A: Pennsylvania has two programs which allow businesses to receive tax credits for donations they make to qualified educational institutions. These are the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) programs.
The EITC program provides tax credits to eligible businesses, which contribute to approved Scholarship Organizations, Educational Improvement Organizations, or Pre-K Scholarship Organizations.
The OSTC program provides tax credits to eligible businesses, which contribute to an approved Opportunity Scholarship Organization
The tax credits equal 75% of the business’ contribution and can increase to 90% if the business contributes the same amount for two consecutive years. These credits can be used to offset Pennsylvania corporate net income taxes, personal income taxes, as well as a host of other PA taxes. Businesses interested in either of these programs must apply annually with the Pennsylvania Department of Community and Economic Development.
For further information on these tax credits, please contact Denise McKnight, DMcKnight@friedmanllp.com.