Information for Donors

Would you like to…

  • provide scholarship funds to enable a family to send their children to a private school?
  • provide assistance to families struggling with school costs for their children?
  • receive a tax credit from the state of Pennsylvania for up to 90% of the funds that you provide?

NOW YOU CAN!

PA Act 4 of 2001, Act 48 of 2003, and Act 85 of 2012 established the Pennsylvania Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs. These programs provide tax credits to eligible businesses that contribute to a scholarship organization. Tax credits are awarded on a first-come, first-served basis until all the available program credits are exhausted. Tax credit not used in the tax year the contribution was made may not be carried forward or carried back and is not refundable or transferable. More information is available by calling PA Department of Community and Economic Development (DCED) at 717-787-7120 or by visiting www.newpa.com. Or, call Faith Builders Scholarship Services and ask for more information: 814-789-4518. You may also send an e-mail to secretary@fbscholarship.org.

How to Participate

  1. Each business must first determine eligibility. All Pennsylvania businesses that pay any of the following taxes are eligible:
    • Bank and Trust Company Shares Tax
    • Mutual Thrift Institutions Tax
    • Title Insurance Companies Shares Tax
    • Capital Stock Franchise Tax
    • Insurance Premium Tax
    • Corporate Net Income Tax
    • Personal Income Tax of S Corporation Shareholders, or partners in a general or limited partnership
  2. Under the K-12 program, an eligible business must choose the 1- year or 2-year contribution option.
    • The 1-year option grants tax credits equal to 75% of the contribution.
    • The 2-year option grant tax credits equal to 90% of the contribution, if the business agrees to provide same amount for two consecutive tax years. The maximum contribution is $750,000.
    • Under the Pre-K program, an eligible business receives 100% tax credit for the first $10,000.00 and 90% there after up to maximum of $200,000.00 per taxable year.
  3. The business completes and submits an application to the PA Department of Community and Economic Development (DCED) each year. Since the deadline for the application varies, depending on the situation of the business, Faith Builders strongly encourages businesses to mail, e-mail, or fax their applications to Faith Builders by June 15 of each year. Faith Builders will electronically file these applications with the DCED on the correct filing dates. Send your application to:

    Faith Builders Scholarship Services
    28527 Guys Mills Rd
    Guys Mills, PA 16327

    Fax: 814-789-3396

    E-mail: secretary@fbscholarship.org

  4. Within 60 days of receiving approval for the tax credit from the DCED, the business makes the scholarship contribution to an approved organization, such as Faith Builders Scholarship Services. Send the contribution to the address below.

    FB Scholarship Services
    28527 Guys Mills Rd
    Guys Mills, PA, 16327

    Faith Builders Scholarship Services is entirely donor-recommended, meaning that you as a donor recommend and advise which school or schools benefit from your contribution.

  5. Faith Builders sends the business a contribution receipt, and sends a copy of this receipt to the DCED on behalf of the business. This activates the credit for the business.
  6. If the business wishes to pass the credit through to the shareholders/partners of a pass-through entity, they must also file the Irrevocable Pass Through Election Form (REV-1123) with the PA Department of Revenue on or before the due date of their business tax return.

Download business brochure

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Download business reapplication

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Download recommended schools form

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Read more online at PA's official websites (external sites): EITC and OSTC.