The Department of Community and Economic Development (DECD) announced it has shortened and simplified the Opportunity Scholarship Tax Credit (OSTC) online application system. The changes were made to create a more timely and efficient application process. The new online application is reduced from seven pages to two, provides business applicants a detailed process to follow, and streamlines the DCED review process.
The Scholarship Tax Credit Program provides $50 million in tax credits for businesses that give to approved Opportunity Scholarship organizations. Businesses interested in these tax credits should visit www.newpa.com/ostc for more information and the electronic application.
The purpose of the Opportunity Scholarship program is to provide scholarships to students who attend public school in districts that are ranked at the lowest 15 percent of underperforming districts in the state. The scholarships enable students to attend another public institution outside their school district or a non-public school.
Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made. The tax credits awarded to businesses will be equal to 75 percent of what they contributed, and this amount can be increased to 90 percent if a business agrees to commit to two years. The amount may not exceed $400,000 per taxable year.