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Pennsylvania OSTC & EITC Tax Credits through gifts to the Girard College Fund
The Girard College Fund is an approved scholarship organization under the Opportunity Scholarship Tax Credit Program (OSTC) and the Educational Improvement Tax Credit Program (EITC). You may want to speak to your accountant to see if your business qualifies for this opportunity.
• What is OSTC? EITC?
The Opportunity Scholarship Tax Credit (OSTC) and the Educational Improvement Tax Credit (EITC) provide a tax credit to businesses that pay Pennsylvania's corporate income tax, for contributions to scholarship organizations that give private-school scholarships to eligible children. The OSTC and EITC programs enable a Pennsylvania business to direct up to $750,000 of its Pennsylvania state tax dollars directly to Girard College's scholarship program. Tax credits are given for 75 percent of a one-year gift and 90 percent of gifts given in two consecutive years.
• Comparing programs
Girard’s OSTC Program supports scholarships to eligible students residing within the boundaries of a low-achieving school to attend Girard.
PA tax credit availability: historically, year around
Girard’s EITC Program supports scholarships to eligible students to attend Girard
PA tax credit availability: for new business applications, available credits tapped quickly on first-come-first-served basis, beginning July 1
• Who can make a gift?
Eligible businesses. If a company pays any of the following corporate taxes to the Commonwealth of Pennsylvania, the EITC program allows it to make a gift to Girard College instead:
• Corporate Net Income Tax • Insurance Premiums Tax
• Capital Stock Franchise Tax • Mutual Thrift Institution Tax
• Bank and Trust Company Shares Tax • Insurance Company Law of 1921
• Personal Income Tax of S corporation shareholders or Partnership partners
• Title Insurance Companies Shares Tax
• How much of my tax liability may I donate to Girard through OSTC or EITC?
Pennsylvania's tax credit is for 75% of a corporation's contribution of up to $750,000 per taxable year, or 90% of its contribution, if it contributes to Girard for two consecutive years. Total tax credits authorized for the scholarship program are limited annually, and tax credits are awarded to participating businesses.
• Where do I get an application?
For both OSTC and EITC, the “Business Application Guide” provides a step-by-step guide through the short online application. After reviewing this guide, apply through the electronic “Single Application for Assistance” by creating a Login profile here.
• When do I submit the application?
OSTC: Any time.
EITC: For businesses not already participating, applications should be submitted online on July 1, 2016. EITCs will be made available on a lottery basis that day, and to the extent funds remain available, on following days. There has been heavy demand for these tax credits; in past years they have all been awarded on July 1.
• Does the State provide more program information online?
Yes! For OSTC: click here
For EITC: click here
• Planning to participate?
Please contact: Bruce Bekker, Director of Institutional Giving, or 215-787-4489.
• Tax Credit donations to-date
In recent years, OSTC and EITC donations to Girard have ranged from $1,000 to $600,000. This giving provides a key revenue stream for the school, and gifts at every level help to support the growing and evolving programs at Girard College.
"For six years I have used the EITC program to redirect my organization's PA tax obligations to Girard College in support of the school's incredible mission to serve at-risk children. If you want to help highly motivated kids in need and are looking for a good deal of personal satisfaction (at virtually no after-tax cost), get involved and ask your employer to join in the EITC program. It is easy and you can make a difference."
– Mark Solomon, Chairman, CMS Companies