The Educational Improvement Tax Credit program (EITC) provides tax credits for gifts given in support of students who qualify for financial aid, while the Opportunity Scholarship Tax Credit program (OSTC) specifically provides support for qualifying students from low-achieving school districts. These are districts with public schools that perform in the bottom 15% of Pennsylvania schools. 

Businesses may apply for both programs within a given year.

How do the programs differ in practice?

  • The programs offer the same tax credit benefits.
  • Household income guidelines are the same for both programs.
  • To qualify for OSTC, a family must reside in the bottom 15% achieving schools in Pennsylvania.
  • EITC allows for a maximum scholarship of full tuition and fees.
  • OSTC allows for a maximum scholarship of $8500 ($15,000 for special needs children).
  • EITC and OSTC scholarships can be stacked so the maximum scholarship level of full tuition and fees can be reached.

You can learn more about these tax credit programs at https://dced.pa.gov/programs/educational-improvement-tax-credit-program-eitc/.