Pennsylvania Educational Tax

Credits: The Basics

Children’s Scholarship Fund PhiladelphiaApril, 2016

What are Educational Tax Credits?• Pennsylvania (PA) runs 2 tax credit

programs through the Department of Economic and Community Development (DCED).

• These state incentives allow businesses to invest in education of low-income children throughout the state at little cost.

Children's Scholarship Fund Philadelphia - 100 S. Broad St., Ste. 1200 Philadelphia, PA 19110 - 215-606-1874 2

The Two PA Educational Tax Credits

• Opportunity Scholarship Tax Credit Program (OSTC)Provides scholarship support for children in grades K-12 who are trapped in the state’s lowest-performing schools.

• Educational Improvement Tax Credit Program (EITC)Provides scholarship support for children in grades K-12 and financial support for other educational programming, such as after-school enrichment programs.

Children's Scholarship Fund Philadelphia - 100 S. Broad St., Ste. 1200 Philadelphia, PA 19110 - 215-606-1874 3

Why should a business participate in PA Educational Tax Credits?Small Investment• The PA Tax Credit,

coupled with a Federal Charitable Gift Deduction, brings your net cost of a donation to as little as 5 cents on the dollar.

Big Impact• Investing in education

makes a huge difference in the life of a child.

• Children’s Scholarship Fund Philadelphia (CSFP) alumni maintain a 96% on-time high school graduation rate, almost 30% higher than their peers.

Children's Scholarship Fund Philadelphia - 100 S. Broad St., Ste. 1200 Philadelphia, PA 19110 - 215-606-1874 4

How does a business participate in PA Educational Tax Credits?

A business calculates its PA tax liability for the

year.

The business applies for tax credits online.

Contact CSFP for details.

Upon approval from DCED, the business donates to CSFP.

CSFP supplies the business with a form to

send to the state to receive tax credits.

CSFP administers scholarships to K-8th

grade children in need of quality education.

Children's Scholarship Fund Philadelphia - 100 S. Broad St., Ste. 1200 Philadelphia, PA 19110 - 215-606-1874 5

Why partner with CSFP through PA Educational Tax Credits?

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Experience• For over 15 years, CSFP has

administered PA Educational Tax Credits for its donors and scholarships for families.

• CSFP has earned Charity Navigator’s coveted 4-Star rating for 4 years in a row, putting us in the top 9% of charities they rate.

Children's Scholarship Fund Philadelphia - 100 S. Broad St., Ste. 1200 Philadelphia, PA 19110 - 215-606-1874 7

Breadth• CSFP is the largest

provider of needs-based, K-8th grade scholarships in PA.

• CSFP has awarded over 18,500 scholarships to low-income children seeking educational alternatives.

Children's Scholarship Fund Philadelphia - 100 S. Broad St., Ste. 1200 Philadelphia, PA 19110 - 215-606-1874 8

Impact• CSFP alumni graduate high

school prepared and on-time, at a consistent 96% rate, and 80% go on to attend college within a year after graduation.

Children's Scholarship Fund Philadelphia - 100 S. Broad St., Ste. 1200 Philadelphia, PA 19110 - 215-606-1874 9

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CSFP can help your business save money and invest in the future.

• Contact us for more informationntell@csfphiladelphia.org215-606-1874

• Learn more: http://www.csfphiladelphia.org/tax-credits/

• www.csfphiladelphia.org