Last year our successful school choice advocacy resulted in a new scholarship program aimed at helping students in the lowest performing schools in the state chose a better school to meet their needs. Unfortunately, a lengthy, complicated application form for companies that wished to contribute to a scholarship foundation and claim a tax credits had slowed implementation.
With persistent lobbying by PCC staff, the Department of Community and Economic Development (DCED) revised the form making it easier to apply.
Pennsylvania businesses can apply for Opportunity Scholarship Tax Credits through DCED’s electronic single application system. Tax credit applications will be processed on a first-come, first-served basis, according to the date submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day’s applications. Applications will be approved until the amount of available tax credits is exhausted.
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made. The tax credits awarded to businesses will be equal to 75 percent of their contribution amount, which can be increased to 90 percent upon the business committing for two years. The total may not exceed $400,000 per taxable year.
For more information about the Opportunity Scholarship Tax Credit Program, visit www.newpa.com/ostc.