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EITC-OSTC Program

Pennsylvania Educational Improvement Tax Credit Program (ETIC)

Corporate Quick Facts

What it is

The Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) are Pennsylvania tax credit programs that allow PA business and individual that pay applicable taxes to received up to a 90% TAX CREDIT to be used by schools like the Mount for financial aid.

  • EITC funds provide direct support to need-based tuition assistance subsidies for Mount Saint Joseph students.
  • OSTC further augments the support options available for students whose neighborhood school is low achieving.

Who is eligible

Businesses in Pennsylvania that pay the following taxes:

  • Corporate Net Income Tax
  • Capital Stock/Foreign Franchise Tax
  • Personal Income Tax
  • Bank Shares Tax
  • Title Insurance and Trust Company Shares Tax
  • Insurance Premiums Tax (with some exclusions)
  • Mutual Thrift Institution Tax
  • Malt Beverage Tax
  • Retaliatory Fees under section 212 of the Insurance Company Law of 1921

As well as individuals who pay Personal Income Tax through an LLC, S Corp, or who own or are a member of an LLP.

What are the benefits?

  • 75% of your contribution to Mount Saint Joseph Academy will go as a tax credit to your Business
  • This increases to 90% if you agree to contribute the same amount for 2 years
  • The 25% (or 10% for a two year commitment) that is not included in the tax credit may be claimed as a charitable donation on your federal tax return

How to apply

  • Both EITC & OSTC applications are filed via a single application at www.newpa.com
  • Upon approval, you have 60 days to make your gift to any of the following:
    • Mount Saint Joseph Academy Scholarship Fund
    • Henkels Foundation, with a designation to Mount Saint Joseph Academy
    • Business Leadership Organized for Catholic Schools (BLOCS), with a designation to Mount Saint Joseph Academy

Application deadlines

  • May 15 – Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 17/18 to renew their 2-year commitment.
  • May 15 – Businesses who are in the middle of their 2-year commitment.
  • July 3 – All other businesses including initial applicants.

NOTE: Pass-through entities, such as S-Corporations, Partnerships, LLCs, etc., can now apply the same day as C-Corporations. Applications must be submitted electronically using DCED’s Single Application for Assistance.

Individual Quick Facts

What it is

Pennsylvania has two programs, the Education Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC), that allow businesses to redirect their PA taxes to Mount to be used for financial aid.

NOW, the state has expanded the reach of those two programs to include individuals who pay personal income tax in the state of PA!

This addition to the ETIC/OSTC programs means that instead of paying your PA taxes to the state, you can convert that money into a significant gift to the Mount and your gift will be directly used to help girls with financial aid needs attend the Academy.

How it works

How it works

Mount is partnering with BLOCS (Business Leadership Organized for Catholic Schools) to make it easy for you to participate in this incredible program. Individuals who wish to support the Mount while taking advantage of these PA tax credits can do so by becoming a member of the BLOCS LLC.

  • To qualify, an Individual needs to become a member of the BLOCS LLC by signing an operating agreement.BLOCS will provide an operating agreement electronically via DocuSign that can be executed to become a member.
  • The agreement will require a two year commitment to Fund the LLC.
  • An individual must owe State PA Taxes of at least $5,000-7,000 (approx. annual income base of $166-$228,000) each year for 2 years to qualify for the EITC program and must be considered an “accredited investor”.
  • The first year capital contribution, of the two-year commitment, is due at signing. The individual will make the contribution to BLOCS and BLOCS will issue the individual a “K1” form. The K1 at the State level is considered a tax credit, under the OC “other credits”, thus reducing your state tax liability. Your second contribution is due approximately one year later and will be processed in the same manner.

For more details, please visit https://blocs.org/personal-tax-credits/

How to apply

  1. Discuss the tax advantages of participation for you with your accountant or tax advisor.
  2. Contact BLOCS to express your interest in joining the BLOCS Scholarship LLC by visiting https://blocs.org/personal-tax-credits/
  3. Complete the simple Operating Agreement form to make a two-year commitment.
  4. Make sure you are designating your tax credit to Mount Saint Joseph Academy.

What are the benefits?

Benefits to you

  • Because of recent changes to the tax laws, when you make a donation to Mount by redirecting your taxes through the BLOCS LLC your potentially non-deductible state income tax becomes a deductible federal charitable contribution.
  • Participation in this program allows you to become a significant donor to Mount and our financial aid program with little to no additional cost to you as an individual.

Benefit to Mount

  • In keeping in line with our goals of inclusivity and unity, more EITC and OSTC money means a Mount education can be made available to more young ladies regardless of their socioeconomic background.

Additional Information

To learn more about what is involved with the Mount/BLOCS partnership, visit https://blocs.org/personal-tax-credits/. You can also contact Jim Downey, Development Manager at BLOCS, at jdowney@blocs.org or at 484 704-2300 ext. 304; or Jody Romano, Mount’s Vice President of Institutional Advancement, at jromano@msjacad.org or at 215 233-3177 ext. 389.

Participating Companies

Below are some of the companies that have donated to the Mount through the EITC/OSTC Program:

  • AF&L Insurance Co.
  • AJO, LP
  • Apex Mortgage
  • Bravo Foundation
  • Carr & Duff
  • Chadwick Service Co.
  • Direct Image and Design
  • Driscoll Construction
  • Equus Capital Mangement, Ltd.
  • First Priority Bank
  • Firstrust Bank
  • HiFi House
  • J.P. Mascaro & Sons
  • Matthew 25 Management Corp.
  • Morris Capital Management Group
  • Movers Specialty Services, Inc.
  • NSM Insurance Group
  • Penn Liberty Bank
  • The Pennsylvania Trust Co.
  • PTR Baler and Compactor Co.
  • D. M. Sabia & Co., Inc.
  • Vault Communications