PA Tax Credit Programs
Make your tax dollars work for Germantown Friends School
The Pennsylvania Educational Improvement Tax Credit Program (EITC)
The Commonwealth of Pennsylvania offers a unique opportunity for businesses in the state, to reduce tax liability by contributing to registered scholarship organizations. Gifts to scholarships at Germantown Friends School can generate a tax credit equal to 75% of the contribution, up to a maximum of $750,000 annually. Two-year commitments, receive a 90% tax reduction up to a maximum of $750,000 each year.
The Pennsylvania Opportunity Scholarship Tax Credit Program (OSTC, formerly known as EITC 2.0)
Due to the high demand for EITC tax credits, the Commonwealth of Pennsylvania created a similar program in 2012. Like EITC, the OSTC program provides tax credits to eligible businesses contributing to an Opportunity Scholarship Organization. Business contributions are then used to provide tuition assistance in the form of scholarships to eligible students residing within the boundaries of a low-achieving school to attend Germantown Friends 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.
Friends Education Equity Collaborative
Thanks to a Special Purpose Entity created in 2016 called the Friends Education Equity Collaborative, qualified individual investors now have the opportunity to take advantage of tax credits for supporting qualified scholarship organization like Germantown Friends School. To learn more about the Friends Education Equity Collaborative and if you qualify, please email Colette Kleitz or call 215-951-2340 x3284.
- What is the time for applying?
- Is my business eligible?
- How can my business register?
- Who do I contact with questions?
- Important Additional Information
If your business is authorized to operate in Pennsylvania and pays one of the following taxes, you can register to be eligible for the Pennsylvania Educational Improvement Tax Credit Program (EITC) and the Pennsylvania Opportunity Tax Credit (OSTC).
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Share Tax
- Title Insurance Companies Share Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
- Personal Tax of S corporation shareholders or Partnership partners
The single application is now available online from the Pennsylvania Department of Community and Economic Development. This document provides further information on the program as well as guidelines for filling out the application form. Additionally, you can call Colette Kleitz in the Advancement Office for guidance at 215-951-2340 x3284.
Pennsylvania businesses can apply for Opportunity Scholarship Tax Credits through DCED’s electronic single application system. The business application guide, found here explains the process of applying. Additionally, you can call Colette Kleitz in the Advancement Office for guidance at 215-951-2340 x3284.
Tax credit applications for both programs will be processed on a first-come, first-served basis by day submitted, so please submit your application on the first day your business is eligible. All applications received on a specific day will be processed on a random basis before moving on to the next day's applications. Applications will be approved until the amount of available tax credits is exhausted.
Once a business is eligible, the business has sixty (60) days to make its contribution to Germantown Friends School. An approved company must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter; Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable.