Pennsylvania Tax Giving Program

The Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) are Pennsylvania tax credit programs that allow PA businesses and individuals that pay applicable taxes to redirect those payments to scholarships while receiving  a 90% TAX CREDIT for the contribution.

• 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 classified by the state as "low achieving."

Individuals with state income tax liability.

Businesses in PA 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
• Individuals who pay personal income tax, either because they are shareholders in an LLC, pass thru S-Corporation, a member of an LLP or have wage tax withheld. 

• You can be eligible to donate your Pennsylvania taxes by joining a Scholarship Special Purpose Entity or Limited Liability Company through state approved entities.
• As a participant in a scholarship SPE or LLC you will receive a 90% Pennsylvania tax credit when you make a commitment for two years. Donors who make a one-year commitment will receive a 75% tax credit.
• Any amounts contributed that you do not receive a tax credit may be claimed as a charitable donation on your federal tax return.

Mount is partners with BLOCS (Business Leadership Organized for Catholic Schools), as well as the Foundation for Catholic Education, to make it easy for you to participate in this incredible program. Individuals who wish to support the Mount while taking advantage of these Pennsylvania tax credits can do so by becoming a member of a BLOCS or Foundation for Catholic Education SPE or 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 ear commitment to fund the LLC. 
  • An individual must owe State PA taxes of at least $5,000 (approx. annual income base of $175,000) 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 in Q1 of the year following your contribution. 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/

The Foundation for Catholic Education also requires a two year commitment to fund the LLC; however, an individual must owe State PA taxes of at least $1,000 for each year for 2 years to qualify for the EITC program.

For more details about getting involved with a Foundation LLC contact them at https://www.foundationfce.org/