More Information on EITC/OSTC
Merion Mercy Academy is an approved scholarship organization. The EITC and OSTC program restricts scholarship assistance based on need.
Many Pennsylvania taxpayers are eligible for these business tax credits. EITC and OSTC tax credits can be used for any of the following tax categories:
- Corporate Net Income Tax
- Capital Stock Franchise Tax
- Bank & Trust Company Shares Tax
- Title Insurance Company Shares Tax
- Insurance Premiums Tax
- Mutual Thrift Institutions Tax
The following business ownership structures can utilize tax credits as pass through for their personal income tax liability:
- S corporations
- General Partnerships
- Limited Partnerships
- Shareholders, Partners or Members of S Corporations
- Single member of Limited Liability Company (LLC)
Here is how the EITC and OSTC process works:
- Eligible businesses must submit to the single electronic application to the Department of Community and Economic Development (DCED). This one application should be used whether you are applying for EITC tax credits or OSTC tax credits.
- With this application, an eligible business agrees make a contribution to an approved scholarship organization. Merion Mercy Academy is designated as such.
- A business will be approved for a tax credit equal to 75 % for a one-time contribution or 90% for making a donation for two-consecutive tax years.
- Applications for tax credits for fiscal year 2016-17 will be accepted beginning July 1, 2016. Tax credit applications are processed on a first-come-first-served basis. All applications received on a given day will be processed on a random basis before moving on to the next day’s applications. Applications will be processed until the amount of available tax credits is exhausted. This means those businesses that apply for tax credit on the first day, July 1, have the strongest rate of approval.
- Upon receipt of written approval for tax credits from the DCED, the business must make its contribution to Merion Mercy within 60 days of the date of the notification letter. The business donor will receive a receipt from MMA, and this document, as proof of contribution, must be sent to the DCED within 90 days of the date of the notification of approval of tax credits.
- If the Department does not receive proof that the contribution was made within 60 days of the date of the notification letter, the approval of tax credits will be rescinded.
- Upon receipt of proof of contribution, the DCED will notify the Department of Revenue to apply the tax credits against the appropriate taxes identified by the business in its application.