PENNSYLVANIA BUSINESS TAX CREDITS
Businesses authorized to do business in Pennsylvania corporations may be able to make a gift to Children’s Jubilee Fund under special Tax Credit Programs established by the Commonwealth. In general, businesses that accrue obligations for particular types of Pennsylvania taxes may contribute all or a portion of the amount of their tax obligation (to a maximum of $750,000) to Jubilee, and receive up to a 90% credit against their tax obligation.
The two tax credit programs are the Educational Improvement Tax Credit Program (EITC) and the Opportunity Scholarship Tax Credit Program (OSTC). Both programs are administered by the Pennsylvania Department of Community and Economic Development (DCED).
Both programs place maximum income guidelines on families of scholarship recipients, with preference given to familes whose Adjusted Gross Income (AGI) is at or below 185% of the federal poverty limit. The main difference between the two programs is that OSTC scholarships are designated for students who reside within the catchment area (attendance boundary) of a state-certified low-achieving public school.
Businesses may designate their contribution to benefit one or more Jubilee network Schools, or they may leave their contribution undesignated, in which case Jubilee will divide the contribution among all Pennsylvania Jubilee network schools.
Jubilee can assist business in applying for these programs. Contact Jubilee Executive Director Tim Geiger for additional details.
EDUCATIONAL IMPROVEMENT TAX CREDIT PROGRAM (EITC) OPPORTUNITY SCHOLARSHIP TAX CREDIT PROGRAM (OSTC)
Which businesses are eligible to participate in EITC AND OSTC?
In general, entities authorized to do business in Pennsylvania who are subject to one or more of the following Pennsylvania taxes are eligible to participate. DCED makes the final determination on business eligibility.
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance and 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
HOW THE PROGRAMS WORK
- Businesses wishing to participate in these programs must have a PA Keystone Login. If this is your first application and you do not already have a Keystone Login account, please create one in advance of your application date.
- Businesses who have fulfilled their two-year commitment and wish to renew that commitment for an additional two-year term apply starting on May 17. Applications are made online solely through the Keystone Login Service.
- Businesses making an initial application to DCED submit their applications starting July 1. Businesses with existing two-year commitments may submit an application for additional tax credits on this date as well. (The closer to July 1, the better.) Applications are made solely online through the Keystone Login Service.
- DCED typically notifies businesses they are approved to participate in the program in September.
- Businesses typically make their contributions to Jubilee from September through November. According to the terms of the program, contributions must be made within 60 days of the notification letter from DCED.
- Upon receipt of the contribution, Jubilee will send a receipt to the business. The business must then provide that letter to DCED as proof of the contribution within 90 days of the original notification letter.
- Jubilee disburses the scholarship funds to schools.