EITC & OSTC
Tax Credit Programs
The EITC (Educational Improvement Tax Credit) and OSTC (Opportunity Scholarship Tax Credit) programs are Pennsylvania tax credit programs that allow businesses and participating individuals to redirect a portion of their state tax dollars to provide scholarships for students attending private schools. These scholarships help make private education more affordable for families and give taxpayers the opportunity to support educational choice without increasing their overall tax burden.
How to Participate in the EITC & OSTC Tax Credit Programs
Through Penngift
Step 1
Find Out What You Can Give & Complete Your Joinder
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Contact your accountant or check last year’s PA state tax liability to find out how much you can commit.
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Fill out the Spring 2026 Penngift Joinder Link and fill out the Joinder under our Tuition Free Initiative page. This form will automatically submit your information to Penngift for processing.
Step 2
Submit Your Donation
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After completing the form, you will receive a confirmation email from Penngift. The email will include instructions on which SPE (Special Purpose Entity) to make your check payable to and where to send it.
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Follow the payment instructions provided in the Penngift email.
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Be sure to complete your contribution by December 31st to qualify for this tax year’s credits
Step 3
Receive Proof of Your Donation
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For donors who file taxes annually, Penngift will send you an email confirming your contribution upon receiving your donation. In February of the following year, you will also receive a K1 form showing your total contribution for the year. Save this to give to your tax preparer or upload it if using online tax software.
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Donors who file taxes quarterly can claim their credits without the K1 document, but they will be available to you in February of the following year. You will receive an acknowledgment email that you can present to your accountant when preparing your taxes.
Step 4
File your taxes
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Submit your K-1 form when filing your PA-40 state tax return.
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You’ll receive a 90% credit on your PA taxes, and possibly a federal deduction too!
Step 5
Receive Your Refund
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Beginning in September, donors receive their refunds through their chosen method. Either as a check or as a direct deposit.
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Donors who give their contributions and complete the Spring Joinder by May 7th will start to receive their funds in mid-June.