ABOUT EITC & OSTC
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 Montessori School. Funds received under these programs provide direct support to our need-based tuition assistance program. Please consider making The Montessori School (TMS) 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 Montessori 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 TMS 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?"
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
"I don't own a business. Am I eligible as an individual?"
Accredited investors may be be eligible for tax credits that were previously available only to businesses. An increasing number of families and friends of The Montessori School 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 is slightly different. For more information, next steps, or to connect with a Montessori School family who participates in PA State Tax Credit Programs through personal taxes, contact Laura Stulb at 215-542-0740 or firstname.lastname@example.org.
"What's the difference between EITC and OSTC?"
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.
"How can I apply for EITC and OSTC?"
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.
For additional information for businesses please visit the PA EITC website or contact Laura Stulb at email@example.com.
For tax credits for individuals, please email Laura Stulb for program details.
"What happens after I apply?"
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 Montessori School.
The Montessori 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.