When it comes to impactful community contributions, professional advisors are uniquely positioned to guide clients toward strategic and tax-wise philanthropy. Offering clients the opportunity to simultaneously earn tax credits while also making meaningful contributions to support the education of local students is a win-win for all.
Such opportunities exist locally, in part, thanks to the Washington County Community Foundation’s participation in the Pennsylvania Educational Improvement Tax Credit Program (EITC) and the Opportunity Scholarship Tax Credit Program (OSTC).
These programs empower corporate donors to champion innovative grants to public schools and need-based scholarships to students attending private schools while enjoying substantial tax credits ranging from 75% to 100% for qualifying contributions. Eligible taxes include the Personal Income Tax, Capital Stock/Foreign Franchise Tax, Corporate Net Income Tax, Bank Shares Tax, Title Insurance & Trust Company Shares Tax, Insurance Premium Tax (excluding unauthorized, domestic/foreign marine), Mutual Thrift Tax, Malt Beverage Tax, and the Surplus Lines Tax.
If your corporate client is subject to any of these taxes and is interested in supporting the education of local students, now is the time to pursue the opportunity, as the available credits have recently been increased. In December 2023 HB 301 was passed, which included a groundbreaking $150 million increase for the EITC and the OSTC programs.
The EITC and OSTC credits have been so popular over the years that they were exhausted very early in the process and many interested corporations were excluded. With this significant increase more corporations will be able to participate, and more students will benefit.
What has been the impact locally? We have awarded grants of approximately $1.2 million to each of the 14 public school districts and two career & technology centers in Washington County. Need-based scholarships awarded were approximately $2.2 million. This $3.4 million investment in the education of local students would not have been possible without our corporate partners.
For clients seeking to redirect taxes to support our local community, the EITC and OSTC programs offer an exceptional opportunity to align philanthropic efforts with financial goals. This balance ensures that contributions not only make a tangible difference for local students but also provide an advantage beyond traditional tax deductions.
The information contained in this publication is not intended as legal or tax advice.