EITC and OSTC

EITC and OSTC

The Pennsylvania State EITC/OSTC programs allow anyone – individuals or businesses – who pay Pennsylvania state tax dollars to redirect most of those dollars to the school of their choice.  In turn, 90% of those redirected dollars must be used by the school as financial aid, which means that those state tax dollars become scholarship dollars.

The program has grown exponentially over the last few years, and has created two significant benefits.  First: the program has created a way for Pennsylvania taxpayers to take some control of the way their tax dollars are spent.  And second, because of the volume of participation it has generated, it has rapidly expanded scholarship pools for Pennsylvania students. 

And because the program requires that 90% of EITC dollars are used as scholarship dollars, the impact on students is immediate and extraordinary.

We recommend that you check in with your tax and/or financial advisor to ensure this contribution (or any charitable contribution of any kind) makes sense for you;

1. Then, you will need to select a Special Purpose Entity to coordinate the process with.  There are a number of SPE’s in Pennsylvania, but the two that we have the most experience working with are the Central Pennsylvania Scholarship Fund and Children’s Tuition Fund;  

2. You will complete a one page joinder agreement with that SPE;

3. You will make your contribution directly to the SPE;

4. In/around early March you will receive tax documents from the SPE which will verify the tax benefits of your payment:

5. PA Department of Revenue Form 1123 which verifies the SPE;

6. And a Federal K1/PA State RK1, which verifies the breakdown of your payment to the SPE for state and federal filing purposes;

7. And, Stone will receive 100% of your contribution (less minor administrative fees) for tuition assistance in the next school year;

If you are interested in learning more about EITC and OSTC for businesses or for individuals, please email development@stoneindependent.org.