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EITC

EITC and OSTC

Turn your PA tax burden into RTCS scholarships!


Through the EITC (Educational Improvement Tax Credit) and OSTC (Opportunity Scholarship Tax Credit) programs set up by the state of Pennsylvania, you can put your tax dollars to work to support children in our community. On behalf of all our families that will receive scholarships this year, thank you for your participation!

The EITC (Educational Improvement Tax Credit) and OSTC (Opportunity Scholarship Tax Credit) programs, aimed at corporations, provide companies and individual taxpayers with a tax credit for donations to a non-profit scholarship or educational improvement organization. The donations directly benefit local PA schools, often in the form of scholarships to low or moderate-income families. RTCS has many families who depend on scholarships from EITC and OSTC. You can learn more about these programs by clicking here.

How do RTCS students benefit from EITC or OSTC contributions?


When you or your business receive tax credits by designating its donation for RTCS’ scholarship fund, your contribution is awarded directly toward the tuition of students based on their financial need, making Christ-centered learning opportunities accessible to children from all socio-economic backgrounds.

What is the maximum tax credit can I receive?


You may take up to $750,000 in tax credits per year. Tax credits equal 75% of the donation for a one-year commitment or a 90% credit for a two-year commitment of equal contributions. Existing federal charitable deductions also apply, so there may be no net cost to the donor. 

Who can participate in EITC and OSTC?


Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes are eligible in the EITC and OSTC programs:
   

• Corporate Net Income Tax
   

• Capital Stock Franchise Tax
   

• Bank and Trust Company Shares Tax
   

• Title Insurance Companies Shares Tax
   

• Insurance Premiums Tax
   

• Mutual Thrift Institution Tax
   

• Personal Income Tax of S corporation shareholders or Partners in a general or limited partnership (LLC)

Can individual taxpayers also participate in EITC and OSTC?

Individual taxpayers with a minimum PA state tax liability of $1000 can participate in EITC via the Children’s Tuition Fund of Pennsylvania Scholarship Partners, LLC

The Department of Community and Economic Development (DCED) requires that all donations are given through approved Scholarship Organizations. RTCS partners with:

ACSI - Children’s Tuition Fund of PA

Attn: Tonia Harding

731 Chapel Hills Drive,

Colorado Springs, CO 80920
Direct: 719.867.5273 | Toll Free: 866-401-4801

https://childrenstuitionfund.org/states/pennsylvania/

The process is very simple!


Information for contributors can be found here. Submit an online EITC or OSTC application at any time.

After CTF of PA Scholarship Partners, LLC has received the approval letter from the Department of Community and Economic Development (DCED), what happens next?

All individual contributions are received from you by September 30th.

CTF of PA Scholarship Partners makes the donation to the scholarship organization. 

A receipt for this donation is sent back to the DCED.

DCED sends a confirmation that the donation was made and notifies the PA Department of Revenue

When the confirmation letter is received from DCED, CTF of PA Scholarship Partners requests your PA K-1 tax credit document to be issued from our CPA firm.

You will be notified when your K-1 is ready.

Use your tax credits in the tax year in which the contribution was made.

 

If you have any questions about EITC or OSTC please contact Karl Leslie at RTCS (412.787.5919, karlleslie@rtcsonline.org) or Tonia Harding at ACSI Children’s Tuition Fund of PA (contact info is above).

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