Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC)
Your business can directly impact the education of a child. Shady Side Academy partners with the Pennsylvania Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) to provide financial aid scholarships for qualifying students. Our goal is to provide equal access to academic excellence for children in our region. Every year, the number of academically talented students applying for financial aid increases and continues to exceed available funds. Even with more than $3.2 million in financial aid awarded in 2017-2018, the Academy was not able to meet the full need of all qualified students. Corporate support, through EITC and OSTC donations, is essential to achieving this goal.
- Application Process
- EITC & OSTC Scholarship Partners
- EITC & OSTC by the Numbers
- EITC Special Purpose Entity (SPE) Program
All applications are now online through a single electronic application.
May 15 – Deadline for business applicants who have fulfilled their two-year commitment and wish to reapply in 2019-2020 to renew their two-year commitment.
May 15 – Deadline for businesses who are in the middle of their two-year commitment.
July 2 – Deadline for all other businesses, including first-time applicants.
Please visit the Pennsylvania Department of Community and Economic Development website for more information, or contact Alicia Barnes at 412-968-3017 or firstname.lastname@example.org.
Shady Side Academy would like to thank these generous companies for participating in the EITC & OSTC Scholarship Partners Program in the recent years.
|Allegheny Mineral Corporation|
|Bennett Supply Company|
|Casey Equipment Corporation|
|Cleveland Brothers Equipment Co., Inc.|
|Far & Sure LLC|
|Federated Investment Counseling|
|Frank B. Fuhrer Wholesale Company|
|Glimcher Brokerage, Inc.|
|Glimcher Group, Inc.|
|The Golden Bone Pet Resort|
|Mid Atlantic Capital Group|
|Mid Atlantic Trust Company|
|NexTier Bank, N.A.|
|PNC Bank, NA|
|Ross Development Company|
|Town Development, Inc.|
|UGI Storage Company|
$5.5 million has been donated to the financial aid program at Shady Side Academy since the inception of the EITC program.
225 grants have been awarded to talented students who could not have afforded a Shady Side education otherwise.
63 students, on average, receive a Shady Side EITC award each school year.
105 businesses have partnered with Shady Side Academy through EITC since 2001.
$8,500 is the average amount of a single EITC award for the school year.
New EITC Special Purpose Entity (SPE) Program for Individual Tax Credits
For individuals that wish to donate to scholarships at Shady Side Academy and receive PA Education tax credits (EITC) on their personal tax return the process of participating in a Special Purpose Entity (SPE) creates an opportunity for an EITC individual donor.
Requirements to Qualify for SPE Program for Individual Tax Credits
- Program is based on tax liability, not income; therefore, each situation will be different. An individual or couple filing jointly must have a state tax liability of $3,500 or more to participate. To see if you qualify, you can find your PA tax liability on Form PA‐40 Line 12 of your most recent tax return.
- This donation is a two‐year commitment to get a 90% tax credit for PA.
- Donors must be employed by or own a for profit business; however, if one works for a business and the other a nonprofit you can file joint returns, both qualify for the purpose of determining tax liability.
- If you are retired, you must own a small business (receive an annual K‐1 form) or work for a business (receive an annual W‐2 form) to qualify as a member of an SPE and receive EITC/OSTC tax credits. Some retirees qualify due to side jobs or residential ownership of business and some do not.
To Purchase a K‐1 and Receive Individual Tax Credits
- Contact Central Pennsylvania Scholarship Fund for a Joinder form (email@example.com) to reserve your 2019 tax credit. Your check will be requested when an EITC tax credit award letter is issued.
- Central Pennsylvania Scholarship Fund will issue you a K‐1 and forward a check to Shady Side Academy.
- This will redirect your Pennsylvania Individual taxes to Shady Side Academy.
- A PA small business typically does not pay PA taxes and so the joinder should be filled out by the individual owners. The business can make the donation from owners draw or tax accounts but the eligible SPE member is the individual that pays PA tax.
Always consult your tax accountant when making decisions that have a tax implication.