Through the PA Opportunity Scholarship Tax Credit (OSTC) and the PA Educational Improvement Tax Credit (EITC), a business can redirect its tax liability by donating to an eligible scholarship organization, like Children’s Scholarship Fund Philadelphia (CSFP).
In turn, CSFP provides low-income Philadelphia children with scholarships to attend quality, K-8th grade private and parochial schools of their choice, and you get 90%* of that donated amount credited against your corporate state taxes.
By combining these tax credits with federal deductions for charitable gifts, the scholarship donation is virtually cost-free to businesses.
*Businesses that commit for two years get a 90% credit. The credit is 75% of the donation amount for a one-year commitment by the business. Both the OSTC and EITC tax credit are available on a first come, first served basis starting July 1 and fill up quickly.