State Tax credits for Giving to The New School
Opportunity Scholarship Tax Credit Program The New School of Lancaster is approved as an Opportunity Scholarship Organization. The OSTC program provides tax credits to eligible businesses that make a contribution used by Opportunity Scholarship Organizations to provide tuition assistance in the form of scholarships. These opportunity scholarships are specifically designed for eligible students residing within the boundaries of a low-achieving school. The application and approval process for OSTC is similar to EITC. For more information, please visit the PA Department of Community and Economic Development website.
Educational Improvement Tax Credit Program The State of Pennsylvania’s Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow businesses in the Commonwealth to earn a tax credit for up to 90% of certain Pennsylvania taxes when they make a donation to a “scholarship organization” such as The New School. Who is eligible? Pennsylvania businesses subject to one or more of the following taxes:
- Corporate Net Income Tax
- Insurance Premiums Tax
- Capital Stock Franchise Tax
- Mutual Thrift Institution Tax
- Bank and Trust Company Shares Tax
- Personal Income Tax of S corporation shareholders or Partnership partners
- Title Insurance Companies Shares Tax
How do I apply? The application process is simple, but application deadlines and timely compliance must be emphasized as there is a yearly statewide cap and tax credits are awarded on a first-come, first-served basis.
1) Submit a completed EITC application through the PA DCED website: www.esa.dced.state.pa.us.
- Applications must be submitted electronically using DCED’s Single Application for Assistance. Hard-copy applications are no longer accepted.
- 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.
- Applications by new business should be submitted by July 1 and are approved on a first-come, first-serve basis and dependent upon available funds.
- Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc., can now apply the same day as C-Corporations.
- Please note The New School is a Scholarship Organization (SO). You will be asked when applying.
2) The Dept. of Community and Economic Development (DCED) will notify you when you have been approved for tax credits.
- You must make a contribution to The New School of Lancaster within 60 days of the date of the approval letter from DCED.
- The New School of Lancaster will send you an acknowledgement letter, which you must then send to DCED to provide proof of the donation, within 90 days of the date of the approval letter.
3) After receiving proof of the contribution, the DCED notifies the Dept. of Revenue, which applies the tax credits against the appropriate taxes identified by the business in its application.