Tax Credit Opportunities for Your Business
In the midst of tax season flurries, we want to introduce you to a benefit that business owners may apply for next tax season. Are you a small business owner, a growing company, or even a family-owned business? The state of Pennsylvania offers a unique way to defer some of your taxes to a private school through tax credit programs.
The Education Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC) are two programs that allow businesses to defer their tax dollars to a school instead of paying their taxes directly to the State. These programs provide financial assistance to families who cannot afford to send their children to private schools.
Who can participate and how?
Only specific types of businesses are allowed to benefit from these types of programs. Businesses that are LLC, LLP, S-Corp, and C-Corp, or Partnerships can all benefit from these programs. Businesses who want to participate must fill out a simple online application for their business. The deadline for applications is July 1, 2017. All applications must be submitted on July 1 since the EITC and OSTC funds are completely exhausted by the end of the day.
Why should my business participate?
Dayspring does their best to promote the businesses that support them. Businesses that give to Dayspring through this program are advertised on the Dayspring website, as well as in print media that is distributed throughout the community. Businesses who are involved in EITC and OSTC receive marketing opportunities through Dayspring. Another attractive point of this program is that businesses can be assured that their tax dollars are going to help to educate a child.
What is the Commitment?
A business submits an application for either a one- or two-year commitment. A one-year commitment provides a business with a 75 percent tax credit. Those businesses that have a two-year commitment receive a 90 percent tax credit. If a business is currently on a two-year commitment and is entering their second year, the business must re-apply by May 15, 2017, to receive credit for their second year.
What is the different between these tax credit programs?
EITC provides funding to schools so that students can receive tuition assistance to attend schools like Dayspring. OSTC targets specific, low-income students who are entering failing schools. OSTC funds these students so that they can attend a private school that they otherwise could not afford.
Because of the popularity of these programs, the amount of tax dollars that can be applied from EITC and OSTC was increased by 75 million dollars. At Dayspring, we have seen countless families aided through these programs. In just this last year, 135 students have benefited from EITC and OSTC at Dayspring. Not only is this program a benefit for businesses, but low-income families as well. Each year the State of Pennsylvania releases a list of failing schools, through this OSTC is able to aid specific children in specific communities. If you would like to apply for EITC and OSTC, click the button below:
Please contact Development Director Joanne Martin with any questions that you may have regarding EITC and OSTC.
Businesses that support Dayspring through EITC and OSTC:
Rodgers & Associates
Garden Spot Mechanical
Garden Spot Electric, Inc.
DH Funk & Sons
Zimco Partners, LP.
Levi’s Building Components
Engle Printing & Publishing Co.
JM Plumbing & Heating
Workman Funeral Home
CHR Corp (Rutters)
Agri – Basics
Donegal Mutual Insurance Company
Lancaster Furniture to Go
Clark Associates, Inc.
Ephrata National Bank
Gibbel, Kraybill & Hess LLP
Univest Bank & Trust Co,
Math U See – Demme Learning
Lancaster Leaf Tobacco
UGI Storage Company