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The Opportunity Scholarship Tax Credit Program (OSTC) was created in July 2012. The OSTC was created with the EITC Program as its model. The OSTC offers tax credits for businesses with a Pennsylvania tax liability. A business may apply annually through the Pennsylvania Department of Community and Economic Development, and when approved make a contribution to a qualified OSTC organization, like the Bridge Educational Foundation. The OSTC credit offers businesses a 75% credit for a one year commitment, and a 90% credit for a consecutive two-year commitment.
The following taxes are eligible for OSTC:
Personal Income Tax - from a pass-through entity
Capital Stock/Foreign Franchise Tax
Corporate Net Income Tax
Bank Shares Tax
Title Insurance & Trust Company Shares Tax
Insurance Premium Tax (excluding surplus lines, unauthorized, domestic/foreign marine)
Mutual Thrift Tax
Malt Beverage Tax
Retaliatory Fees under section 212 of the Insurance Company Law of 1921
The OSTC scholarship recipients are targeted more than the EITC scholarship recipients. OSTC scholarship recipients must be 1) Income-qualified with the same criteria as the EITC Program. 2) Students must reside in the attendance boundary of a Pennsylvania school with test scores in the bottom 15%, as listed annually by the Pennsylvania Department of Education. 3) Students must be enrolled in a school that is eligible to receive OSTC scholarship students.
When Bridge has OSTC scholarships to distribute we will work with our donors to select schools in the areas where they do daily business, and will contact the school officials in those areas directly.
Businesses may apply for the tax credits through Pennsylvania's website. The application can be found here
Additional Information about the OSTC Program can be found on the State's website. The State will maintain a listing of schools in the bottom 15% as well as schools eligible to accept students with OSTC scholarships.
The listing of schools in the bottom 15% can be found here.
The listing of eligible schools where students may use OSTC scholarships can be found here.
Each OSTC foundation will have different policies, procedures, and deadlines, so we encourage families and school officials to visit the State's website and look over the listing of OSTC scholarship organizations. A listing of OSTC Scholarship Foundations may be found here.