PA Tax Credit Program (SPE, EITC, OSTC)
Educational Improvement / Pennsylvania Tax Credit Program Overview
“All your children shall be taught by the Lord, and great will be their peace.”
Through the establishment of Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs, donors can receive up to a 90% tax credit against their personal PA state tax liability by making their gift through EPSF or BLOCS.
The Eastern Pennsylvania Scholarship Foundation (EPSF), in partnership with the Diocese of Allentown, and Business Leadership Organized for Catholic Schools (BLOCS), are dedicated to ensuring that eligible* families have access to high-quality, values-driven private and faith-based education, empowering students with a positive and successful path for the future.
An individual or company who wish to take advantage of this tax credit program may become a member of an EPSF or BLOCS Scholarship LLC. These special purpose entities (SPE’s), are the only financial vehicle available for individuals (or companies who do not have direct tax credit approval) to be able to realize tax credits in return for scholarship donations.
Individuals who pay Pennsylvania income taxes and business that are authorized to do business in Pennsylvania are eligible to have their taxes offset by this tax credit. The most common donation Marian receives is personal income tax including Sub-chapter S-corporations and other “pass-through” entities.
To join, an individual or company makes a 2-year commitment (minimum of $1,000 per year) with the donations sent directly to EPSF
or BLOCS. The LLC will then receive tax credits equal to 90% of the donation amount. These credits will be distributed to each donor
via K-1 form and are then applied to your PA tax liability for the tax year in which the donation is made.
*Eligibility is based on income and student public school home district geography guidelines established by the state
Scholarship Allocation
As a contributing member of an EPSF or BLOCS LLC, you can designate your donation to the school of your choice. Choosing Marian Catholic High School as the recipient of your donation allows your tax dollars to go to work directly in a school close to your heart where you can see the impact in our students!
Sample Tax Calculations
Can I see an example of how the tax credit works?
Sample Calculation for Individual, LLC, Partnership or S-Corporation with a 2-year commitment
Cash donation to Marian Catholic High School via EPSF or BLOCS $10,000
PA Tax Credit Reduction (90% of contribution) ($9,000)
Net Federal Tax Reduction for contribution (assuming 37% tax rate) ($370)
Out of Pocket $630
There is no other way you can make an impact of $10,000 in tuition assistance
for students at Marian Catholic for only $630 out of pocket!
Interested in learning more or making a gift to Marian Catholic of this nature?
Contact Dr. Erin Marek P’28, Director of Advancement
emarek@mariancatholichs.org or 570-467-3335, ext. 115