Important Information About Pennsylvania’s EITC and OSTC Programs
We are rapidly approaching an important date, May 15, for businesses participating in the Pennsylvania Educational Improvement and Opportunity Scholarship Tax Credit Programs. This is the date a business can reapply for another two-year commitment if they just completed a two-year commitment. At Simon Lever, we encourage our clients to file their applications on May 15, since these applications are given preference for funding compared to applications received later.
The guidelines for the programs have not changed. The credit is equal to 90% of the contribution for two-year commitments. The program application is completed online. There is one change to the online application; the signature page does not need to be signed and mailed separately.
Applications will be accepted starting July 1 for clients currently not participating in the program. This date also applies to clients who made a one-year commitment, including pre-kindergarten contributions. Remember that pre-kindergarten tax credits are 100% up to 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.
The capital stock tax rate continues to phase out if the business is planning to use the credit to offset this tax liability. The 2014 and 2015 capital stock tax rate is currently 0.67 mills and 0.45 mills, respectively.