Educational Improvement Tax Credit (EITC) Program

This program, enacted in 2001,  offers tax credits for corporate contributions to certain nonprofit organizations. These nonprofit organizations then use those donations to provide low and middle income families with educational scholarships.

Funding

Corporate tax credits are provided for 75% of the contribution, but a 90% credit can be claimed if the corporation commits to two consecutive annual contributions. These credits are awarded to companies on a first-come, first-served basis until it reaches the established cap. The average per student scholarship benefit from this program is about $2,000.

Eligibility

Eligibility is determined by income. Currently, those with household incomes less than $96,676 plus $17,017 for each child are eligible. Students with special needs are also eligible if they come from a family earning 150% of the baseline income level, and those with the most severe special needs enrolled in special education-specific schools are eligible if they come from a family earning 299% of the baseline income level.

Opportunity Scholarship Tax Credit (OSTC) Program

This program, enacted in 2012, offers corporations tax credits for their donations to scholarship organizations that provide private school scholarships. Students meeting eligible zoning and income requirements are able to receive scholarships from those tax credits to help pay for educational expenses.

Funding

The scholarship organizations determine the amount of a scholarship, which has a limit of the school’s tuition and fees, or $8,500. Based on student population and students with special needs, increased amounts can be available. The average scholarship amount is about $2,000.

Eligibility

To be eligible for this scholarship, the student must live in a school zone where the standardized test scores are in the bottom 15% of public schools. Currently, those with household incomes less than $96,676 plus $17,017 for each child in the family are eligible. Students with special needs are eligible for these scholarships if their family earns 150% of the baseline income level or less, and those with the most severe special needs are eligible if their household income is 299% of the baseline income level or less.

How to Apply

OSTC scholarships are applied for through an approved Opportunity Scholarship Organization (OSO) in the area.

Click the button below to look at the list of OSOs where you can apply. ⬇️

Additional Assistance

Economically Disadvantaged Schools Program

“The Pennsylvania Legislature’s recent budget approval has significantly enhanced the Economically Disadvantaged Schools (EDS) program, raising the tax credit from 90% to 99% for all donations directed to EDS-qualifying schools. This increased incentive is a game-changer for donors who want to maximize their tax credit refunds while making a substantial difference in the lives of students from underserved communities.

“BLOCS is the sole administrator for the EDS Program in Pennsylvania, and we are here to support you through the entire donation process, making it as seamless as possible.”