EITC/OSTC and SPE
Businesses can apply for tax credits which redirect their PA state tax liability towards scholarships for Vocatio students through 2 programs: EITC and OSTC. Individuals can apply for tax credits through a Special Purpose Entity (SPE).
Educational Improvement Tax Credits (EITC) and Opportunity Scholarship Tax Credits (OSTC)
Qualifying businesses can direct a portion of their state taxes to Vocatio through the Educational Improvement Tax Credit program. A commitment can be made for 1 or 2 years. For a 2 year commitment, the tax credit is 90%. The Opportunity Scholarship Tax Credit (OSTC) program functions the same way as EITC, except that OSTC scholarships are reserved for students who live within the attendance boundary of a low-performing school (performing at the bottom 15% of the state).
Special Purpose Entities (SPE)
Individuals with a state tax liability of $3,500 or more may now take advantage of the same tax benefit! Through our approved and tested Special Purpose Entity, individuals and couples may now donate the amount of their state tax liability and receive a 90% state tax credit for that gift. Additionally, you may still also receive federal tax deduction for the remaining 10% out-of-pocket expense.
Jeremy Chen, Director of Development