PA Tax Credit Programs

 

Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC)

Businesses and individuals 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 $4 million in financial aid awarded in 2019-2020, 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.

PA Act 15 of 2020 makes the following EITC changes:

  • Extends the timeline for the current requirement that businesses make a contribution to a scholarship organization, pre-k scholarship organization, or educational improvement organization no later than 60 days following the approval of an application until the end of the business firm's applicable tax year.
  • The bill maintains that business firms are required to provide proof of its contribution in the form of a written acknowledgment from the receiving organization to DCED within 30 days of the contribution.
  • Business firms fulfilling year two of a two-year commitment and are impacted by COVID-19 are permitted to receive a tax credit of up to 90% of the amount contributed in year two. The department is prohibited from reducing the credit authorized in year one of the two year agreement if the year two commitment is less than the year one.

No changes to the application deadlines for recurring applicants (May 15th) and initial applicants (July 1st) are planned.

EITC Infographic

EITC Application Deadlines

May 16 – Deadline for business applicants who have fulfilled their two-year commitment and wish to reapply in 2016-2017 to renew their two-year commitment.

May 16 – Deadline for businesses who are in the middle of their two-year commitment.

July 1 – Deadline for all other businesses, including first-time applicants.