Apply for the PA EITC and OSTC Programs Starting May 15, 2015
The guidelines for the programs have not changed. The credits are equal to 90% of the contribution for two-year commitments. Applications for the programs are completed online (follow the link in the list of Resources below).
Applications will be accepted starting July 1 for all clients currently not participating in the program, regardless of whether they are applying for a one-year or two-year commitment. This date also applies to all clients making a one-year commitment, including pre-kindergarten contributions. New for 2015, businesses can apply for a two-year Pre-kindergarten commitment. Remember that pre-kindergarten tax credits are equal to 100% of the first $10,000 contributed and 90% for any additional amounts contributed. The credit for all other one-year commitments to the EITC and OSTC programs is 75% of the amount contributed.
If the business is planning to use the credit to offset its capital stock tax liability it should be noted that the capital stock tax rate continues to phase out. Currently, the 2015 capital stock tax rate is 0.45 mills and is set to be eliminated entirely in 2016.
Please contact us for assistance applying online or to determine the amount of credits to apply for. Credits in excess of taxes are not carried over to future years. We recommend planning carefully to avoid undesired results. Finally, be sure to follow the instructions regarding dates to make your contribution and to forward your donation receipt to the state in order to secure your tax credits. We are happy to assist you with the various steps of the process.
By Mike Stoltzfus, CPA, MT