Pennsylvania Educational Improvement Tax Credit Program (EITC)
What is it?
EITC is a state program that enables your business to redirect state tax dollars to the Prep in support of academic scholarships for underserved students.
Please note: The Prep’s Scholarship Organization title for EITC is PJHS Scholarship Organization (Pennsylvania Jesuit High Schools)
Any C-Corporations or pass-through entities such as S-Corporations, Partnerships, LLCs, etc., that pay the following Pennsylvania state taxes is eligible to apply for both the EITC and OSTC programs:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Retaliatory Fees under section 212 of the Insurance Company Law of 1921
The Benefit to You
If approved, 75% of your contribution to the Prep will post as a tax credit for your business. This increases to 90% if you agree to contribute the same amount for 2 years. Furthermore, the 25% (or 10% for two year commitment) that is not included in the tax credit may be claimed as a charitable donation on your federal tax return.
Opportunity Scholarship Tax Credit Program (OSTC)
The Commonwealth of Pennsylvania has recently authorized a new program aimed at further augmenting the options available for underserved students to receive a first class education. EITC, as described above, is the preferred program for our supporters to apply for in that it gives the Prep greater flexibility in how the money can be dispersed to our students in need. However, if your application for EITC is denied, do please consider participating in this program.
Please note: The Prep’s Scholarship Organization title for OSTC is PJHS Scholarship Organization (Pennsylvania Jesuit High Schools)