How Do PA Educational Tax Credits Work?

Invest in Philadelphia children while lowering your state and federal tax liability through the PA Opportunity Scholarship Tax Credit (OSTC) and the PA Educational Improvement Tax Credit (EITC). Sixty-six percent of Philadelphia K-8th grade public schools are on Pennsylvania’s list of lowest-performing schools, and parents are desperate for better options for their children.

Both businesses and individuals can utilize PA tax credits. Follow the steps below to discover how you can change the future for children. 

How to participate:

New 2018 applications accepted only on July 2. Call us to get started.

You may obtain credits for a portion or all of your tax liability. Businesses can receive up to $750,000 in tax credits per year.

Credits are first-come, first-served, and often fully utilized on opening day, so CSFP will help you apply.

Companies entering year 2 of a two-year tax credit commitment, or companies renewing a two-year commitment that just ended, must apply on May 15. Read more about renewals.

Companies can apply credits to a variety of state taxes.

There is no minimum to participate! Apply for amount of credits you need based on PA tax liability.

By donating to CSFP through the tax credit programs, you provide hope, opportunity and success for low-income children and our community’s future.

Sample Tax Credit Calculation: C Corp  

Impact26 lives impacted
Donation Amount$50,000
Tax Credit (90%)$45,000
Federal Tax Savings*$1,050
Net Cost $3,950

*21% corporate tax rate applied to net of donation and state credit

How do tax credits for individuals work?

Individuals can form a Special Purpose Entity (SPE) to redirect PA taxes and help low-income children receive quality K-8th grade education.

Instead of creating their own SPE, individuals may join CSFP's fully-managed SPE, and apply to the state for tax credits.

New 2018 applications accepted only on July 2. Call us to get started.

Once credits are approved, donations are made directly to CSFP, and tax credits flow directly to members’ personal taxes, based on ownership. Credits (90% of amount donated) lower your state taxes dollar for dollar.

Please give us a call for more information.

Call 215-606-1874 to learn how to apply.


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