Corporate Support for Lancaster Country Day School through
Educational Improvement Tax Credit Program (EITC)
Opportunity Scholarship Tax Credit (OSTC)
LCDS is eligible to receive corporate gifts through two programs offered by the Commonwealth: the Opportunity Scholarship Tax Credit (OSTC) and the Educational Improvement Tax Credit (EITC). In return, Pennsylvania offers each participating company a tax credit for up to 90 percent of the value of the gift. Both programs provide LCDS students financial aid; OSTC funds specifically benefit students from underperforming districts.
Summary of Guidelines and Corporate Requirements
Both programs are offered by Pennsylvania’s Department of Community & Economic Development (DCED), which provides a full set of guidelines on its website.
The credits received may offset corporate net income tax, capital stock and franchise tax, bank and trust company shares tax, title insurance companies tax, insurance premium tax, and mutual thrift institutions tax (and S-Corp personal income tax for partners and shareholders).
The LCDS Development Staff is eager to speak with interested companies but also encourages companies to consult with their tax preparers with regard to eligibility.
- Business registers on the "single application” page of the DCED website so as to create a user name and password.
- Business completes application for the preferred program.
- Application is submitted electronically using DCED's Single Application for Assistance.
- Business must submit a signature page to DCED via US mail
- Commonwealth confirms eligibility to participate.
- Business issues gift to LCDS
- LCDS produces a letter of acknowledgement that the business submits to the Commonwealth for tax credit.
Please note, because of its popularity, the Commonwealth’s funding for the EITC program is always oversubscribed on the first day the program opens (whereas OSTC funding is often available for several months). For this reason, awareness of EITC dates and deadlines is important:
- Renewal EITC applications for existing donors may be submitted from May 15 to June 30th
- First time EITC applications should be submitted on the first day the program becomes available (typically July 1st).