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 Prep in support of academic scholarships for underserved students.
Please note: Prep’s Scholarship Organization title for EITC is PJHS Scholarship Organization (Pennsylvania Jesuit High Schools)
Both EITC and OSTC applications are filed via the Single Application at http://www.newpa.com/.
For a step by step guide to the online application, please click: application guidelines.
Any C corporation or S corporation that pays the following Pennsylvania state taxes is eligible for the EITC program:
Corporate Net Income Tax
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Personal Income Tax of S corporation shareholders or Partnership Shareholders
The Benefit to You
If approved, 75% of your contribution to 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 Prep greater flexibility in how the money can be dispersed to our students in need. However, if your application for EITC is denied, please consider participating in this program.
July 1, 2015 is the only date you can apply for the EITC/OSTC program.
Director of Development
Both EITC and OSTC applications are filed via the Single Application at www.newpa.com.
For a step by step guide to the online application, please click:application guidelines.
To view EITC and OSTC information in a condensed chart: click here.