Tax Credit Program
The Pennsylvania Educational Improvement Tax Credit Program (EITC) and the Opportunity Scholarship Tax Credit (OSTC) program provide your company with the opportunity to receive a substantial tax credit by making a contribution to The Hill School. A company can receive Pennsylvania state tax credits equal to 75% of its contribution(s) up to a maximum of $750,000 per taxable year. This can be increased to 90% of the contribution, if a company agrees to provide the same amount for two consecutive tax years.
Your support of The Hill School through the EITC or OSTC programs supports our mission to open doors of opportunity for bright and promising students from all backgrounds.
As an approved scholarship organization, The Hill School is committed to providing our Pennsylvania donors with information on this program and how it can impact you.
- Who Is Eligible?
- What Is The Business Application Timeline?
- How Do I Participate/Apply?
- How Is OSTC Different from EITC?
- What Happens After I Apply?
Your company is eligible to participate in the EITC or OSTC tax credit program if you operate in the Commonwealth of Pennsylvania and expect to pay:
On May 15, businesses who fulfilled their two-year commitment can reapply to renew their two-year commitment. Businesses in the middle of their two-year commitment can renew for a second year.
On July 1 all other businesses can apply.
For more information or assistance contact John Spurlock, Capital Giving Officer, at firstname.lastname@example.org or 610-705-1324.
Pennsylvania businesses may apply through Department of Community and Economic Development’s (DCED) electronic single application system.
The EITC program provides tax credits for gifts given in support of financial aid for any Pennsylvania student that meets the annual household income requirements. The only restriction on the size of an EITC award is the tuition for the scholarship organization that is awarding the EITC funds.
The OSTC program deepens the EITC requirements past annual household income to include only those students who live within the boundaries of a low-achieving school district. These are districts with public schools that perform in the bottom 15% of Pennsylvania schools. The OSTC program provides qualified students within these districts with opportunities to receive a quality education from top level institutions. Further, a scholarship organization may only award $8,500 in OSTC funds per student.
The budget and application for the OSTC is separate from the EITC and businesses may apply for both programs within a given year.
The Department of Community and Economic Development (DCED) will send an approval letter to businesses that have been awarded tax credits.
The business then has 60 days to send its philanthropic contribution to The Hill School.
The Hill School will issue a gift acknowledgment receipt which the business must send to the DCED within 90 days of the original approval letter.
After sharing this written acknowledgment with the DCED, the business will receive the amount of tax credits outlined in the original approval letter from the DCED.