Re-direct your tax payments as donations to Crossroads Foundation...
and directly help more underserved students find their path to college.
The Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs provide Pennsylvania businesses with a DOLLAR-FOR-DOLLAR reduction in their tax payments up to 90% for contributions made to Crossroads Foundation. If you pay taxes on your business, these programs allow you to make a substantial donation with no real cost to you. Here's how it works!
What is the purpose of EITC/OSTC?
The EITC program offers tax credits to Pennsylvania businesses for donations to non-profit organizations that provide private school scholarships to low- and middle-income families. The OSTC program offers the same tax credits for organizations providing these scholarships specifically to students living in the lowest-achieving high schools in PA (the bottom 15%) as determined annually by the PA Department of Education. Crossroads Foundation qualifies as a scholarship organization for both programs.
What types of businesses qualify?
- Limited Liability Companies (LLCs)
- Subchapter S-corporations and other businesses that pay their PA State business taxes under the personal income tax on PA business income
- Sole proprietorships (eligible for OSTC credits only)
- Large partnerships and LLC's are also able to create smaller subsidiary partnerships whose members can then participate in the EITC and OSTC programs
What taxes qualify?
- Personal Income Tax of S corporation shareholders or Partnership partners
- Corporate Net Income Tax
- Bank and Trust Company Shares Tax
- Title Insurance Companies Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institution Tax
- Malt Beverage Tax
- Insurance Company Law of 1921
How much of a business' tax liability can be donated?
You can donate up to 100% of your tax liability as long as it does not exceed $750,000 per year maximum. Approved businesses receive a tax credit equal to 75% of the contribution if they commit to making a single donation in a given tax year. The credit increases to 90% of the contribution if the business agrees to make the same donation for two consecutive tax years. The majority of businesses who participate in the EITC/OSTC programs do so for two consecutive years.
How do I sign up?
New applicants should apply online July 1. The application takes about 20 minutes to complete.
Although new applicants may apply after July 1, it is HIGHLY RECOMMENDED that you apply on July 1 due to the enormous popularity of these programs. All applications received on a specific day will be processed on a random basis before moving on to the next day's applications until the amount of available tax credits is exhausted.
Renewing applicants should apply online May 15.
Renewing businesses are those:
- who have fulfilled their 2-year commitment and wish to renew that 2-year commitment or
- who have completed the first year of their 2-year commitment and are renewing for the second year.
While the early application period for renewing businesses is open until June 30, it is HIGHLY RECOMMENDED that you renew on May 15 due to the enormous popularity of these programs. All applications received on a specific day will be processed on a random basis before moving on to the next day's applications until the amount of available tax credits is exhausted.
When do I make my donation?
Once a business' application is approved, the business has 60 days to make its contribution to Crossroads Foundation. In turn, Crossroads will promptly issue you an acknowledgement of your EITC or OSTC donation. An approved business has 90 days from the date they receive their approval letter to send the acknowledgement of their donation to the Pennsylvania Department of Community and Economic Development. Tax credits not used in the tax year the contribution was made may not be carried forward or carried back and are not refundable or transferable.
Who do I contact with questions?
Contact Development Coordinator, Brendan Avila, for any questions you may have about making an EITC or OSTC donation to Crossroads Foundation. Brendan can be reached at 412-661-9422, Ext. 204, or at firstname.lastname@example.org.