52,857 DeniedLast year, 52,857 scholarship applications were denied primarily due to program limits.
50% Left BehindSince 2012, 50 percent of scholarship applications where denied primarily due to program limits. Source: Combined yearly total of EITC and OSTC applications. Right-to-know-law request, PA Department of Community and Economic Development.
Children's Tuition Fund of Pennsylvania:
How Can Your Business Participate?
The Children's Tuition Fund of Pennsylvania (CTF of PA), established in 2001, is coordinated by ACSI Children's Education Fund, a ministry of ACSI. CTF of PA is a scholarship organization that provides tuition assistance for Pennsylvania families with low- to moderate-incomes to attend private Pennsylvania schools.
If you or your business would like to participate in the program, email the Program Administrator or call 717.285.3022.
Where do the scholarship dollars come from?
The CTF of PA Scholarship fund is mainly comprised of tax credit contributions from PA-based businesses that are approved to contribute through the EITC and/or OSTC programs. (EITC legislation of 2001). Individuals who are business owners or employees of a business can contribute through a Special Purpose Entity (SPE).
What is the EITC Legislation?
The Educational Improvement Tax Credit (EITC) legislation of 2001 established tax credits for eligible Pennsylvania-based corporations and businesses that make contributions to scholarship organizations or educational improvement organizations. These tax credits are awarded to corporations or businesses that pay any of the following taxes:
- Capital stock and franchise tax,
- Corporate net income tax,
- Bank and trust company shares tax,
- Title insurance companies shares tax,
- Title insurance premium tax,
- Mutual thrift institution tax,
- Malt beverage tax, and
- Personal income tax of S corporation shareholders, or partners in a general or limited partnership (pass through entities).
How are tax credits applied for a business?
S corporations and LLC's may apply tax credits to business tax liability or pass-through some of all the tax credits to the owner's tax liabilities (Rev 1123).
C corporations will apply all tax credits to the business tax liability.
How are tax credits applied for individuals going through an SPE?
All tax credits pass-through to individual members of the SPE towards their personal tax liability (K-1).
Can a contributor designate a school when giving a contribution?
Yes, a contributor may designate a qualified school according to the Department of Education. As allowed under each state program, funds may be redistributed to other schools if funds are going to expire or cannot be used by the designated school.
Do families apply with CTF for scholarships?
No, schools receive the money and award it to participating families that have applied at participating schools.
|Program||Maximum Credit for Businesses to Contribute||% Tax Credit||Total Program Funding|
|EITC||$750,000||75% - 1 yr.
90% - 2 yr.
|OSTC||$750,000||75% - 1 yr.
90% - 2 yr.
|PKSO||$200,000||100% 1st $10k
90% on bal.