EITC and OSTC
What if you could choose exactly where your taxes go?
If you could direct them back to your community, would you? In Pennsylvania, the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs allow you to do just that.
Individuals and businesses who pay state taxes in Pennsylvania can make a contribution to the Waldorf School of Philadelphia, and receive 90% of that contribution back in the form of a tax credit. In effect, with these programs, it costs the donor a dime to give a dollar. Funds from EITC and OSTC go directly to our need-based tuition assistance program.
Working together with local business partners and bold individual donors, we can achieve truly remarkable things for our school. The Waldorf School of Philadelphia is committed to enrolling a diverse student body from varying economic backgrounds.
The EITC and OSTC programs support our school's financial aid efforts and impact students who, without the assistance of individual and business EITC and OSTC donors, would not be able to enroll at the Waldorf School of Philadelphia.
The Waldorf School of Philadelphia thanks the businesses and individuals who, through their leadership, help to make an independent Waldorf school experience possible for talented students regardless of their financial circumstances.
How Can I Participate as a Business?
Businesses paying PA taxes complete an online application each year to the Department of Community and Economic Development or join an SPE. Awards are received on a first-come, first-served basis and within 60 days the contribution must be made to an approved educational organization. The Waldorf School of Philadelphia provides written acknowledgement that the business sends to DCED for tax credits to be applied.
A business owner can participate in both – as a business applying directly to PA (C-Corp, LLC, LLP, etc.) and as an individual through an SPE. The SPE allows the PA tax liability to flow through it for the purpose of participating in the EITC/OSTC program. The SPE makes the application to the Commonwealth on behalf of the members.
If your business (C-Corp, S-Corp, LLC or Partnership) is subject to one or more of the following Pennsylvania taxes, you are eligible.
The Waldorf School of Philadelphia supports businesses with their applications. Complete our school's simple Business Application and return it to Alex Borders, Director Advancement firstname.lastname@example.org or (215) -248-1662
How Can I Participate as an Individual?
Individuals/households with an annual income of $115,000 or more or a PA personal income tax liability of $3,500+ annually can qualify for this program. Check line 12 on your PA Income Tax Return to confirm your PA Tax Liability amount.
For individuals or couples (married filing jointly), one must work for a business, own a business or own stock in a company that does business in the state of Pennsylvania. Individuals may live outside of PA and still participate if they own such stock. You must have PA State Tax Liability.
Retirees may own a small business (receive an annual K-1 form) or work for a business (receive an annual W-2 form) or own stock in a company that does business in the state of PA. Some retirees qualify due to side jobs or residual ownership of businesses and some do not. We can help you to confirm your qualification status. Retirees may live outside of PA and still participate if they own stock in a company that does business in the state of Pennsylvania. You must have PA State Tax Liability.
Step 1 Consult your tax advisor to confirm eligibility.
Step 2 Estimate your PA Tax Liability for two years. A two year commitment for the same amount is required.
Step 3 Request and complete the SPE joinder agreement.
Step 4 You will receive notification of the tax credit award approval and need to send in a check within 60 days.
Step 5 The SPE immediately passes 100% of your contribution to the Waldorf School of Philadelphia, 100% of which supports our schools needs-based financial aid program.
Step 6 The SPE completes all required tax and accounting paperwork. The SPE will send a K-1 partnership form to you by the end of February which indicates your tax credit.
Contact Alex Borders, Director Advancement email@example.com or (215) -248-1662
May 15—Business applicants who have fulfilled their 2-year commitment and wish to reapply to renew their 2-year commitment.
May 15—Businesses who are in the middle of their 2-year commitment.
July 1—All other businesses, including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment.
Director of Advancement
Our donors took this opportunity to talk about their contributions in their own words.
"As Waldorf graduates, we often get the chance to extol the virtues of our education. But frankly, neither of us would have been able to attend a Waldorf school without the help of financial aid. Countless donors made it possible for the two of us to enter the world with confidence. We now have the opportunity to pay that debt forward, and with the EITC program, we can afford to give more than we could otherwise." -- Rebecca Levine and Chris Morrell
"It's safe to say that nobody relishes paying taxes. However, when you know that your tax dollars are going directly to offer a child a Waldorf education, it really flips the script on paying taxes. The EITC tax credit checks so many boxes: high-impact, fast and easy paperwork, feel good. Check, check, check! If you have every felt compelled to give a child the gift of education, the EITC tax credit is the perfect way to make that happen." -- Jenn and Scott Rezeli, Re:Vision Architecture