Pennsylvania Tax Credit Programs
How it Works
Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC)
Individuals and businesses can directly impact students at The Ellis School by participating in Pennsylvania’s Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs. These programs provide financial aid scholarships, ensuring academically talented students can access the exceptional education Ellis offers.
The demand for financial aid increases every year, exceeding available resources. EITC and OSTC contributions are essential to closing this gap, helping Ellis deliver on its commitment to equity and excellence in education.
EITC Special Purpose Entity (SPE) Program for Individual Tax Credits
Individuals can now support scholarships at The Ellis School and receive Pennsylvania Educational Improvement Tax Credits (EITC) on their personal tax return through a Special Purpose Entity (SPE) program. This unique opportunity allows individual donors to directly impact financial aid at Ellis.
Tax Credit Requirements
Requirements to Qualify for SPE Program for Individual Tax Credits
- The program is based on tax liability, not income; each situation will differ. An individual or couple filing jointly must earn a minimum of $115,000 in state taxable income or have a state tax liability of $3,500 or more to participate. You can find your PA tax liability on Form PA‐40 Line 12 of your most recent tax return to see if you qualify.
- 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 qualifying for 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 businesses, and some do not.
To obtain a K-1 and Receive Individual Tax Credits
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Contact the Central Pennsylvania Scholarship Fund for a Joinder form (joinder@cpsfcharity.org) to reserve your tax credit. Your check will be requested when an EITC tax credit award letter is issued.
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Central Pennsylvania Scholarship Fund will issue you a K‐1 and forward a check to The Ellis School.
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This will redirect your Pennsylvania Individual taxes to The Ellis School.
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A small Pennsylvania business typically does not pay Pennsylvania taxes, so the individual owners should fill out the joinder. The business can make donations from owner draws or tax accounts, but the eligible SPE member pays PA tax.
For more information, please contact Claire Devereux, Director of Advancement and Alumnae Engagement, at devereuxc@theellisschool.org or (412) 661-5992, ext. 131. You may also direct questions to Tami Clark at the Central Pennsylvania Scholarship Fund at tami@cpsfcharity.org or (814) 942-4406.
*Always consult your tax accountant when making decisions that have tax implications.
Corporate Giving Through EITC & OSTC
The Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow eligible Pennsylvania businesses to receive tax credits for their philanthropic contributions to The Ellis School.
All applications are now online through a single electronic application, which can be accessed here: EITC Single Electronic Application.
More Information
Please visit the Pennsylvania Department of Community and Economic Development website for more information or contact Claire Devereux, Director of Advancement and Alumnae Engagement, at devereuxc@theellisschool.org or (412) 661-5992, ext. 131.
