EITC/OSTC

The Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) program is a unique way for corporations, as well as, small businesses to support Roman Catholic High School. For a one year commitment, businesses receive a tax credit of 75% of their contribution. However, businesses receive a tax credit of 90% of their contributions.

It is easy for your business to participate.

First, your company needs to submit their application to BLOCS, a scholarship organization who facilitates this program for Roman.

Once the state approves your application, the corporation needs to make their gift to BLOCS, designated to Roman Catholic High School, within 60 days. Each year, a finite amount of tax credits are made available, and tax credits are awarded to businesses on a first-come, first-served basis.

SAMPLE DONATION

Donation to Roman Catholic High School $10,000
PA Tax Credit (2 year pledge)               $9,000
PA Tax Savings from Contribution       $307
(3.07% Tax Rate)
Net Federal Tax Reduction for Contribution $243
(35% Tax Rate)
Out of Pocket Cost       $450

 

To participate in this exciting program or for more information do not hesitate to contact us at 215-627-5487 ext . 312.

How to get EITC or OSTC Tax Credit

A gift to Roman Catholic High School can offset your Pennsylvania business income tax liability. These business tax benefits are not deductions, but direct credits off your tax liability.

Do you pay Pennsylvania corporate income tax? If so, your gift to Roman Catholic could cost you only 10 cents on the dollar. One-time donors receive a Pennsylvania tax credit of 75%, and donors who commit to two-consecutive-year gifts qualify for a 90% tax credit. The program is available to a wide variety of business and tax categories. EITC and OSTC tax credits can be used for any of the following tax categories:

  •          Corporate Net Income Tax
  •          Capital Stock Franchise Tax
  •          Bank & Trust Company Shares Tax
  •          Title Insurance Company Shares Tax
  •          Insurance Premiums Tax
  •          Mutual Thrift Institutions Tax

 The following business ownership structures can utilize tax credits as pass through for their personal income tax liability:

  •          S corporations
  •          General Partnerships
  •          Limited Partnerships
  •          Shareholders, Partners or Members of S Corporations
  •          Single member of Limited Liability Company (LLC)

Here are the seven simple steps to get an EITC or OSTC Tax Credit:

  1.      Complete the application
  2.      BLOCS submits an online application on newpa.com using info from the application.
  3.      The State will notify you that you have been approved to participate in the program in the fall.
  4.      Once you are approved you have 60 days from date of approval to allocate your donation  to Roman Catholic High School though BLOCS as the scholarship organization.
  5.      After you approve the funds allocation you will receive an acknowledgement from BLOCS as receipt of the donation.
  6.      Send a copy of the acknowledgement letter from BLOCS to Harrisburg as proof of your donation to Roman Catholic High School.
  7.      Final confirmation letter from state is received and attached to company’s tax return.

Key Deadlines:

First-time donors need to submit applications on July 1. 
Beginning July 1, EITC and OSTC credits become available on a first-come, first serve basis. Applications that arrive before July 1 will be rejected. Late applications can be denied as the allocated tax credit dollars run out. Both C corporations and S corporations file on the same day.

Second-time donors (Year 2 of a 2-year commitment), need to submit applications beginning May 15 until June 29. These renewing applications are processed before first time applications.

For more information, contact Patrick Plunkett, Executive Director of Institutional Advancement, at (215)627-1270 or pplunkett@romancatholichs.com.

1.)    For help in filing your electronic application, the official EITC/OSTC information is on the business application guide , which explains the process of applying. The process is very straight forward.
If you have problems or questions about completing you application, please contact Will Stangler at wstangler@Romancatholichs.com. We will answer any questions and expedite your process.

 2.)    For an official overview of the EITC and OSTC tax credit program, please visit newpa.com/eitc and newpa.com/ostc.