EITC for Businesses

How Does This Program Work for Me as a Business Owner?

The Pennsylvania Education Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow businesses to utilize their Pennsylvania tax liability to provide scholarships to needy students. A business paying Pennsylvania taxes can get up to a 90% state tax credit for contributions made to state-approved organizations which help children in kindergarten through 12th grade. 


The tax credit procedures for the EITC and OSTC programs are identical -- the difference between the two is the beneficiaries:

  • EITC has 3 tax credits available:
    • Credits for contributions to an eligible "Scholarship Organization" (SO). The SO provides scholarships for students in Grades K-12 whose families meet program guidelines;
    • Credits to a "Preschool Organization" (PKTC). The PKTC provides scholarships for students in Pre-K whose families meet program guidelines; and
    • Credits for contributions to an "Education Improvement Organization" (EIO). An EIO provides funds to organizations which offer enhanced curricula to public schools. 
  • OSTC provides tax credits to enable students in Grades K-12 who reside in a low-achieving school (ranked in the lowest 15% of the Commonwealth) to receive scholarships.

Businesses paying Pennsylvania taxes  complete a simple online application to participate in one of the above four programs. Upon approval, the taxpayer can receive a credit for between 75% – 100% of their Pennsylvania state tax liability by making a contribution to the Foundation for Jewish Day Schools. 


If the business makes a two-year commitment for the same amount in each of the two years, it receives a state tax credit equal to 90% of the amount contributed. For a one-year commitment, the business receives a 75% state tax credit. 


Pennsylvania businesses apply to participate by:

  • Submitting an application to Pennsylvania’s Department of Community and Economic Development (DCED); or 
  • A business owner can join an Special Purpose Entity (SPE) at the Jewish Scholarship, LLC, where the contributions and tax credits are passed through to the individual.

Pennsylvania awards these business tax credits on a first-come, first-served basis. If approved, the business will receive a letter from the DCED and then has 60 days to make its financial contribution to an approved organization such as the Foundation for Jewish Day Schools. The Foundation will provide the business a written acknowledgement which the business sends to the Commonwealth so the tax credits can be applied.

Learn More About Business Participation

For more information on participation by a business, contact Ellen Matz, Executive Director of the Foundation for Jewish Day Schools, at  ematz@jewishphilly.org or 

215-832-0525. 


There are step-by-step instructions on the Foundation's website at: 

https://jewishphilly.org/wp-content/uploads/2018/06/eitc-how-to-apply.pdf. 

Can I Participate Both as an Individual and as a Business?

Yes! A business owner can participate in BOTH; as its business (C-Corp, LLC, LLP, etc) and as an individual through a Special Purpose Entity (SPE).


The individual does not need to reside, nor does the business need to be incorporated in Pennsylvania, but Pennsylvania taxes must be paid in each case. 


A business owner can become a member of a JSLLC Special Purpose Entity. This is the vehicle which enables the individual's Pennsylvania tax liability to flow through it for the purpose of participating in the EITC/OSTC program. It is the SPE which makes the application to the Commonwealth on behalf of its members. 

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Is there a maximum allowable contribution?

 For a business submitting its own application, maximums are:

  • EITC/OSTC/EIO: $833,333 contribution ($750,000 tax credit)
  • PKSO: $221,111 ($200,000 tax credit)
  • There is no minimum for a BUSINESS entity applying on its own. 

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Contact Us

Jewish Scholarship, LLC

Phone: 610-668-0044 Email: Info@jewishscholarshipllc.com