How would you like to designate a significant portion of your Pennsylvania business tax liability to help disadvantaged children attend high-performing schools?
Corporations can make a significant impact on children’s futures by providing Gesu School students with scholarship aid, and receive tax credits (yes, tax credits, not deductions!) for their contributions through the Pennsylvania Educational Improvement Tax Credit (EITC) program and the Pennsylvania Opportunity Scholarship Tax Credit (OSTC) program.
Through both EITC and OSTC:
- A business can contribute up to $750,000 in scholarship aid (up to a total of $1,500,000 when applying through both programs) to Gesu School and receive a tax credit of up to 90%. A business can also contribute up to $200,000 in pre-kindergarten scholarship aid and receive a tax credit of 100% for the first $10,000 contributed and up to 90% of the remaining amount contributed.
- The contribution(s) may be deducted for federal tax purposes, further reducing or in some cases completely eliminating the cost of the contribution.
- Businesses are eligible if they pay one or more of the following Pennsylvania taxes: corporate net income tax, capital stock and franchise tax, bank and trust company shares tax, title insurance company shares tax, insurance premiums tax, mutual thrift institution tax, or a tax under Article XVI of the Act of May 17, 1921, known as the Insurance Company Law of 1921. This includes the personal income tax of S corporation shareholders or partnership partners.
What is the bottom line for your business?
After the 90% state tax credit and the deduction you can take on your federal tax return for the remaining 10%, your estimated out-of-pocket expense is as follows:
The maximum businesses can claim for 2016-2017 through EITC and OSTC is $833,333 (for each program).
If you are ready to apply for credits through either the EITC or OSTC (or both!) programs, you can access the Desktop Guide for detailed applications instructions.
Please contact the Development Office to discuss whether EITC or OSTC is right for your company and to walk through the EITC/OSTC application process. Contact us at 215-763-9077 or firstname.lastname@example.org.
Parents: Gesu School awards EITC and OSTC scholarships to Gesu School students as part of the financial aid package they receive upon registering at Gesu School. If you are interested in enrolling your child(ren) at Gesu, please contact our main office at 215-763-3660.