EITC/OSTC Program

Pennsylvania offers educational tax credits known as the Educational Improvement Tax Credit (EITC) or the Opportunity Scholarship Tax Credit (OSTC) that allow businesses/individuals to redirect tax dollars to AIM in support of student scholarships.

• EITC/OSTC offers the donor a PA tax credit of 90% for a 2-year commitment or a business may apply for a tax credit of 75% or 1 year.
• Educational Improvement Tax Credits (EITC) contributions provide financial aid to students who attend an eligible scholarship organization like AIM Academy.
• The Opportunity Scholarship Tax Credit (OSTC) program supports AIM students from low-income households who live in neighborhoods with low-achieving public schools (bottom 15% PSSA scores). The tax benefit to businesses is the same.
• Individuals may also join a Special Purpose Entity (SPE) such as AIM Scholarship 1, LLC, Pennsylvania Education Partners LLC, BLOCS, Central PA Scholarship Fund and others.

Questions? Ask US!

Businesses paying Pennsylvania taxes complete an online application each year (July 1, 2026) to the Department of Community and Economic Development or join an SPE. Awards are received on a first-come, first-served basis and within 60 days the contribution must be made to an approved educational organization. AIM provides a written acknowledgement that the business sends to DCED for tax credits to be applied.

A business owner can participate in both – as a business applying directly to PA (C-Corp, LLC, LLP, etc.) and as an individual through an SPE. The SPE allows the PA tax liability to flow through it for the purpose of participating in the EITC/OSTC program. The SPE makes the application to the Commonwealth on behalf of the members. Some SPEs have a minimum contribution – the business maximum is an $833,000 contribution ($750,000 tax credit).

If your business (C-Corp, S-Corp, LLC or Partnership) is subject to one or more of the following Pennsylvania taxes, you are eligible.

• Personal Income Tax of S corporation shareholders or Partnership partners
• Corporate Net Income Tax
• Capital Stock/Foreign Franchise Tax
• Bank Shares Tax
• Title Insurance & Trust Companies Shares Tax
• Insurance Premium Tax
• Mutual Thrift Tax
• Malt Beverage Tax
• Retaliatory Fees under section 212 of the Insurance Company Law of 1921

Next Steps

Tax credits are awarded on a first-come first-served basis through completing a Single Application for Assistance each year.

• Applications for the second year of a two-year commitment are due May 15.
• Renewal applications for donors completing a two-year commitment are accepted starting May 15.
• New business applications are submitted on July 1.
• Tax credits are given for 75% of your business contribution, up to a maximum of $750,000 per year.
• Businesses making a two-year commitment receive a tax credit equal to 90% of the contribution.
• Please consult your tax advisor to maximize your potential tax savings.

Step-by-Step Application Guide

The application takes less than 10 minutes to complete.

EITC Information page

OSTC information page

If you pay Pennsylvania income taxes you can donate them to AIM Academy! Individuals can redirect up to 100% of their personal state tax bill to AIM through the same EITC/OSTC programs by joining a Special Purpose Entity (SPE). The SPE allows the PA tax liability to flow through it for the purpose of participating in the EITC/OSTC program. The SPE makes the application to the Commonwealth on behalf of the members. Some SPEs have a minimum contribution – the business maximum is an $833,000 contribution ($750,000 tax credit). A two-year commitment will get you a 90% credit on state taxes owed. And the 10% not included in the tax credit may be claimed as a charitable donation on your federal tax return.

To become a member of an SPE, you must:

• Give a 2-year commitment with a minimum contribution indicated by the SPE.
• Sign an operating agreement with your first-year contribution.
• Please consult your tax professional to choose the right amount.

Next Steps

AIM Scholarship LLC, BLOCS, PA Education Partners, Central PA Scholarship Fund and others.

• Step 1      Consult your tax advisor to confirm eligibility and review the operating agreement and joinder. 
• Step 2      Estimate your PA Tax Liability for two years. A two year commitment for the same amount is required.
• Step 3      Complete the joinder agreement with signatures from the designated SPE by the date indicated.  The program is on a first-come first-served basis.
• Step 4      You will receive notification of the tax credit award approval and need to send in a check/wire within 60 days.
• Step 5     The SPE immediately passes your contribution to AIM Academy for student scholarships.
• Step 6     The SPE completes all required tax and accounting paperwork. The SPE will send a K-1 partnership form to you by the end of February which indicates your tax credit.

For more information contact Joy Antonoplos, Director of Development, 215-948-9335, jantonoplos@aimpa.org.