EITC/OSTC Tax Credit Programs

Corporate and Individual Support for Lancaster Country
Day School through Educational Improvement Tax Credit Program (EITC)
and Opportunity Scholarship Tax Credit (OSTC)

Summary Description

LCDS is eligible to receive corporate and individual 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 participant 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.

The LCDS development staff is eager to speak with interested companies and individuals but also encourages them to consult with their tax preparers regarding eligibility. Call Chief Advancement Officer Shelby LaMar at (717) 397-7240.

Please note: Because of its popularity, the Commonwealth’s funding for these programs is always oversubscribed on the first day the program opens. For this reason, awareness of key dates and deadlines is important:
  • Renewal EITC/OSTC applications for existing donors may be submitted from May 15 to June 30
  • First time EITC/OSTC applications should be submitted on the first day the program becomes available (typically July 1).

Corporate Guidelines

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).

Both programs are offered by Pennsylvania’s Department of Community & Economic Development (DCED), which provides a full set of guidelines on its website.

The EITC/OSTC Application and Gift Process

  • 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.

Opportunities for Individuals

Individuals, who meet certain income criteria, can redirect up to 100% of their personal state tax bill to LCDS through the same EITC/OSTC programs by joining a Special Purpose Entity (SPE).

As with the corporate programs, a two-year commitment yields a 90% credit on state taxes owed. (And the 10% not included in the tax credit may be claimed as a charitable donation on federal tax returns.)
To become a member of an SPE, an individual must:
  • Give a 2-year commitment with a minimum contribution indicated by the SPE.
  • Meet the SEC Defined Accredited Investor Requirement, Rule 501 of Regulation D: Individual income of $200,000 OR a joint combined income of $300,000 in each of the last two years; or $1,000,000 net investable assets excluding primary residence.
  • Sign an operating agreement with your first-year contribution.

EITC/OSTC Staff Contacts

List of 2 members.

Lancaster Country Day School is a preschool-12th grade, coed college preparatory school with students from Lancaster, Hershey, York and Reading.