Gifts for Tax Credit
Pennsylvania's Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow businesses and qualified individuals to earn a tax credit when they direct their taxes to a “scholarship organization” such as Gladwyne Montessori.
Is my business eligible?
If your business pays any of the following taxes to the Commonwealth of Pennsylvania, the EITC and OSTC programs allow these tax dollars to be directed to scholarships:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under Section 212 of the Insurance Company Law of 1912
Pass-through entities (S-Corporations, Partnerships, LLCs, etc.), special purpose pass-through entities and C-Corporations are eligible to apply for tax credit.
Am I, as an individual, eligible?
Those individuals who have an annual income of $200,000 (single) or $300,000 (joint) OR a net worth of at least $1,000,000, excluding the market value of a primary residence, are eligible to join a Special Purpose Entity (SPE) as an “accredited investor” and participate with their personal tax liability.
Which programs benefit Gladwyne Montessori?
Gladwyne Montessori is eligible to receive two of EITC scholarship options: Scholarship Organization (SO) and Pre-Kindergarten Scholarship (PKSO) as well as OSTC scholarships (OS). By making an SO or OS donation you receive a tax credit of 75% for a one year commitment or 90% for a two year commitment. If you chose PKSO, you receive a 100% tax credit for up to $10,000 (anything over $10K is a 90% tax credit).
How do I apply?
The application process is simple. The key is meeting application deadlines since tax credits are awarded on a first-come, first-served basis until funds are exhausted. Business guidelines are available here or visit www.dced.pa.gov and search EITC business guidelines.
- Applications must be submitted electronically using DCED’s Single Application for Assistance.
- Applications for the second year of a two-year commitment are due May 15.
- Applications for businesses who have fulfilled their two-year commitment and wish to renew their commitment are due May 15.
- New applications should be submitted on July 1, 2019.
IMPORTANT: It is critical to submit your new application on July 1, 2019 at 12:01 AM to increase the likelihood your business will benefit from the program.
Where can I get more information?
For additional information, please visit the Department of Community and Economic Development at www.dced.pa.gov and search EITC or contact Molly Robbins, Director of Institutional Advancement at 610-649-1761, ext. 104.