Educational Improvement Tax Credits (EITC)

EITC/OSTC: WIN-WIN BENEFIT

Turn Your Tax Dollars into Scholarships

As a business owner, you have the unique opportunity to choose how to direct your state tax dollars to provide significant resources to educational non-profit institutions. Lebanon Catholic School has been the beneficiary of EITC/OSTC dollars enabling us to provide tuition scholarships for those interested in an education at our school who otherwise would not be able to afford this educational experience.  The need for scholarship support is greater now more than ever, as an increasing number of our families at LC qualify for tuition assistance.

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What is EITC/OSTC?

Pennsylvania’s Educational Improvement Tax Credit Program (EITC) and the Opportunity Scholarship Tax Credit (OSTC) Program enable the business community to invest directly in tomorrow’s workforce by turning tax dollars into scholarship funds.  Instead of sending your business tax dollars to Harrisburg, you can allocate this money to Lebanon Catholic School to help support scholarships and tuition assistance. Under EITC/OSTC, businesses are credited for contributions to qualified scholarship organizations, such as the Neumann Scholarship Foundation (NSF) that provide much needed tuition assistance. When you contribute to the Neumann Scholarship Foundation through EITC/OSTC, you can designate your donation directly to Lebanon Catholic School. With minimal or no additional costs, businesses like yours and others can impact the lives of children seeking a better future through education.

What does a Neumann Scholarship provide?

Some hallmarks of the Lebanon Catholic School education include: small class sizes with individual attention; state of the art technology with SMART Boards and computers; close collaborations with families to nurture each child’s growth and achievement to reach his/her fullest potential. Equally important to producing strong learners, we’re dedicated to develop strong faith-filled leaders – good people with compassion for those around them to build a stronger community.

How does the EITC program work to benefit Lebanon Catholic Families?

  • If a business donates money to Lebanon Catholic School through the EITC program, that money is used to provide financial aid to students who qualify through FACTS Tuition Management.
  • As more students are able to come to Lebanon Catholic School, the total student population grows, which then allows for the overall reduction of every family’s tuition

Net effect:

Companies can effectively get a 90% tax credit for an EITC donation. If a company has not maximized their percentage of charitable donations, they can also deduct their contribution on their federal tax return. The net effect is that there may be $0 cost (beyond taxes that otherwise would be paid) to establish a scholarship at Lebanon Catholic School through the Neumann Foundation.  Sound too good to be true? Click Here for more information about EITC.

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How does your business apply to participate in the EITC Program?

A business applies to participate by completing a simple one-page application form (Appendix 1-SO). The form MUST BE COMPLETED ELECTRONICALLY online through the Department of Community and Economic Development’s (“DCED”) website www.newpa.com. For further information or questions, you can reach DCED at (717)787-7120.

Deadlines to Apply and Reapply

May 15 – Business applicants who have fulfilled their 2-year commitment and wish to renew their 2-year commitment.
May 15 – Businesses who are in the middle of their 2-year commitment.
July 1 – All other businesses

If you are interested in turning some tax liability into a charitable contribution to provide scholarship dollars to LC students please contact Lori Kostow at (717) 273-3731, ext. 327.

Please help us strengthen our school and community by participating in the program.