Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC)

Turn your PA tax burden into Kennedy Catholic Family of School (KCFS) scholarships!

Through the EITC (Educational Improvement Tax Credit) and OSTC (Opportunity Scholarship Tax Credit) programs set up by the state of Pennsylvania, you can have your tax dollars go directly to students in Mercer County. The EITC (Educational Improvement Tax Credit) and OSTC (Opportunity Scholarship Tax Credit) programs, aimed at corporations, provide companies with a tax credit for donations to a non-profit scholarship or educational improvement organization. The donations directly benefit local PA schools, often in the form of scholarships to low or moderate-income families. KCFS has many families who depend on scholarships from EITC and OSTC. You can learn more about these programs by clicking here.

How do KCFS students benefit from my EITC or OSTC contributions:

Like anything valuable and worthwhile, it costs money for KCFS to deliver educational excellence for all our students. Yet, KCFS also seeks to be an affordable alternative for a diverse community of students. When your business receives tax credits by designating its donation for KCFS’ scholarship fund, your contribution is awarded directly toward the tuition of students based on their financial need, making a Catholic education accessible to children from all socio-economic backgrounds.

How much of a tax credit can I receive:

You may take up to $750,000 in tax credits per year. Tax credits equal 75% of the donation for a one-year commitment or a 90% credit for a two-year commitment of equal contributions. Existing federal charitable deductions also apply, so there may be no net cost to the donor.

What type of business can participate in EITC:

Businesses authorized to do business in Pennsylvania who are subject to one or more of the following taxes are eligible in the EITC program:

  • Corporate Net Income Tax
  • Capital Stock Franchise Tax
  • Bank and Trust Company Shares Tax
  • Title Insurance Companies Shares Tax
  • Insurance Premiums Tax
  • Mutual Thrift Institution Tax
  • Personal Income Tax of S corporation shareholders or Partners in a general or limited partnership (LLC)

The DCED requires that all donations are given through approved organizations. KCFS partners with:

Community Foundation of Western PA and Eastern OH
33 Chestnut Street
Sharon, PA 16146
p) 724.981.5882 | f) 724.983.9044
  OR STAR Foundation Scholarship Fund
Diocese of Erie
P.O. Box 10497
Erie, PA 16154

The process is very simple:

Submit the KCFS short EITC-OSTC Application (coming online soon) at any time. The Community Foundation will send the application to DCED on your behalf according to the DCED application timeline. Based on available funding DCED will send an approval letter to you. Once approved, you must provide proof to DCED within 90 days of the notification letter that the contribution was made within 60 days of the notification letter. You will send your contribution to the Community Foundation, designated to benefit Kennedy Catholic Family of Schools. The Foundation will send you proof of your contribution. Use your tax credits in the tax year in which the contribution was made.

Important Documents:

If you have any questions about EITC or OSTC please contact Director of Advancement, Janet Taylor for more information.