EITC and OSTC
It costs less than a dime to give a dollar
If you or your company pays taxes in Pennsylvania, consider supporting students in need at DVFS through the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs. It's the closest thing to free money you'll ever see. Learn more about EITC/OSTC for businesses, below.Or, read about EITC for individuals >
How it works
Tax credits are dollar-for-dollar reductions in the amount of taxes owed. Businesses receive tax credits from the state of Pennsylvania in exchange for making charitable contributions to an approved scholarship organization, like DVFS. The amount of tax credits ranges from 75% of the contribution, to 90% if the business agrees to provide the same amount for two consecutive years. A $10,000 contribution can cost a business just $610 out of pocket - what a way to make an impact!
Any company authorized to do business in PA is eligible to participate, including national companies. Tax credits may be applied towards a variety of PA taxes. Subchapter S-corporations and other "pass-through" entities will be able to use the credit against the shareholder, member or partners' PA personal income taxes.
Timing Is Everything
Companies must apply every year to participate in the EITC or OSTC programs.
Current participants wishing to continue with the programs - whether beginning a new cycle, or in the middle of a 2-year cycle - should send in their renewal applications on May 15.
New companies participating in the programs for the first time should apply on July 1, 2019. All companies apply using the online DCED Single Application for Assistance. Applications are processed in random order on each day, and allocations of tax credits are made to companies on a first-come, first-served basis. The supply of tax credits is extremely limited; current participants should apply on May 15, and new businesses on July 1, for priority consideration.
Your Impact on DVFS Students
All funds from EITC and OSTC are earmarked for need-based financial aid. To date, the EITC and OSTC programs have raised over $2 million from 36 businesses, helping over 70 students receive the tuition assistance they need to attend DVFS.
Karen Stockmal, a current parent, EITC supporter, and tax attorney at KMS Law Offices, has offered to be a resource for members of the DV community who wish to participate in this program. Or, contact Anne-Marie McMahon, Development Director, at 610-640-4150, ext. 2152. Other resources are available from the DCED website.
Thank you to our recent EITC/OSTC Corporate Supporters: