Additional $40 Million in PA Tax Credits Available July 1
Last week it was announced that an additional $40 million is available to Pennsylvania businesses to assist families with private school scholarships! Although all Nazareth Prep students qualify for these scholarships, the tax credits ‘ran out’ in 2021 leaving a $1 million funding gap. With this additional funding, new applications and even businesses shut out in the past have a significantly greater chance of being funded. The application opens Thursday, July 1, but you must act quickly, as applications are processed on a first-come basis!
The Commonwealth provides tax credits to eligible businesses contributing to a registered Scholarship Organization such as Holy Family Foundation, a subsidiary of Holy Family Institute. Business contributions are then used to provide tuition assistance in the form of scholarships to eligible students attending a private school like Nazareth Prep, which is now the largest high school in Pittsburgh with a majority Black student body.
Credits are applied to the tax liability of a business for the tax year in which the contribution is made. The tax credits awarded to the business are equal to 75% of the contribution amount and increases to 90% with a two-year commitment. That is the equivalent of providing a $10,000 scholarship at a cost of $1,000.
There are two kinds of scholarship credits: Educational Improvement Tax Credits (EITC) and Opportunity Scholarship tax Credits (OSTC). Because most Nazareth Prep students live in under-performing school districts, they qualify for OSTC. Therefore, we recommend applying for OSTC as these credits are less competitive and more likely to be awarded. You can learn more, download the full description and apply HERE.
Apply July 1
Pennsylvania businesses can begin applying on July 1. The business application guide explains the process of applying. Tax credit applications will be processed on a first-come basis beginning July 1. Applications will be approved until the tax credits are exhausted. Our past experience is that all funds are distributed within a few days, so apply on or as close to July 1 as possible!
Please contact me if you have any questions. Holy Family Institute and the families we serve have benefitted from this program since it was introduced over 20 years ago, but there has never been an opportunity like this to assist students in need like those attending Nazareth Prep!