Tax Credit Giving at IMS: Impact Made Simple
Redirect your personal or corporate Pennsylvania state taxes to scholarships at Independence Mission Schools through the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs and receive a 90% tax credit on your contribution. GET STARTEDMake an Impact This Spring!
Spring is a great time to participate in tax credit giving! Redirect your Pennsylvania state taxes to support Independence Mission Schools and receive a 90% tax credit. If you pay estimated quarterly taxes, this can be an especially effective time to give.
A Simple Way to Turn Your PA Tax Dollars into Impact and Opportunity
Fueled by donors like you, the EITC and OSTC programs give children in and around Philadelphia access to a Catholic school education. Nearly 98% of IMS students receive a scholarship through tax credit giving, with an average award of approximately $5,000. Utilized solely for financial aid and scholarships, these programs turn taxes you already owe into hope and opportunity for children across the city.
Tax Credit Giving Contribution Estimator
Use the calculator below to estimate your maximum potential contribution to IMS through tax credit giving. This calculator is for informational purposes only and does not constitute legal or tax advice.
Questions? Ready to participate?
Contact Brett Foley, Director of Tax Credit Giving.
Choose Where Your Tax Credit Support Goes
When designating your tax credit gift, you can select where your contribution will make an impact:
- Independence Mission Schools – Supporting students most in need across the network
- St. Barnabas
- SS. Cyril & Philomena
- St. Frances Cabrini
- St. Helena-Incarnation
- Holy Cross
- St. Malachy
- St. Martin de Porres
- St. Martin of Tours
- Our Mother of Sorrows/St. Ignatius of Loyola
- St. Raymond of Penafort
- St. Rose of Lima
- The DePaul Catholic School
- St. Thomas Aquinas
- St. Veronica
“Everyone says they have no say in where their tax money goes. The Educational Improvement Tax Credit program is a fantastic opportunity to have a say and give the gift of a Catholic school education.”
Your Guide to Tax Credit Giving
IMS’s Director of Tax Credit Giving, Brett Foley, is ready to guide you through the simple, rewarding process of making a tax credit gift. Reach out directly at 215-771-7038 or [email protected] and discover how your support can open doors for students while receiving a 90% credit on your contribution.
Becoming a Tax Credit Donor is Simple
Step 1: Determine Your Pennsylvania Tax Liability
Use our convenient Contribution Estimator above, or check Line 12 on your previous year’s PA-40 tax return.
Step 2: Make Your Contribution
Enroll through one of IMS’s partner organizations, designating to IMS or the IMS school of your choice.
Opportunities start at just $1,000.
Step 3: Claim Your Tax Credit
Apply the 90% credit to your PA state taxes.
Step 4: Extra Credit
If you itemize, claim the remaining balance (10%) as a federal charitable deduction.
Step 5: Repeat
Renew your pledge each year for continued impact.
Frequently Asked Questions
What are the EITC and OSTC programs?
The Educational Improvement Tax Credit (EITC) program was developed within the Pennsylvania Department of Community and Economic Development (DCED) in 2001, allowing business taxpayers to receive tax credits for contributions that fund scholarships. In 2012, the Opportunity Scholarship Tax Credit (OSTC) program was added, specifically to support scholarships for students living within the attendance zones of the state’s lowest-performing public schools.
Originally open only to businesses, legislation passed in 2014 made it possible for individuals to participate through special purpose entities and receive a credit on their personal PA income tax. By law, funding received through the EITC and OSTC programs must be used solely for scholarships and financial aid, making it an immensely impactful way to put your tax dollars to work.
Can businesses participate in the EITC/OSTC programs?
Yes! The EITC and OSTC programs are available to businesses authorized to do business in the Commonwealth of Pennsylvania that are subject to certain taxes including:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Surplus Lines Tax
Businesses can apply to receive a tax credit of 75% of their contributions, up to $750,000. If a firm makes a two-year funding commitment, for the same amount in both years, the tax credit can be increased to 90%. To apply for tax credits directly with the state, please visit the DCED website and submit your application on July 1. Businesses can also participate through our partner organizations on a rolling basis, subject to availability.
What if I think this program sounds too good to be true?
Oftentimes, individuals and businesses are not familiar with tax credit giving simply as a result of a lack of awareness and publicity. Rest assured, the EITC and OSTC programs are as valid as they are life-changing. If you’re still skeptical, we encourage our potential donors to consult with their tax professional.
Are there downsides to participating?
The only downside – if you want to call it that – is that donors must make their gift first and then, come tax refund time, they’ll receive up to a 90% credit from the Pennsylvania Department of Revenue.
Who or what is eligible to participate in the EITC program?
Individuals who pay Pennsylvania income taxes and businesses that are authorized to do business in Pennsylvania and are subject to one or more of the following taxes:
- Personal Income Tax
- Capital Stock/Foreign Franchise Tax
- Corporate Net Income Tax
- Bank Shares Tax
- Title Insurance & Trust Company Shares Tax
- Insurance Premium Tax (excluding unauthorized, domestic/foreign marine)
- Mutual Thrift Tax
- Malt Beverage Tax
- Surplus Lines Tax
Can I designate my tax credit gift to a specific IMS school?
Yes! EITC participants can direct their gift to one, some, or all IMS schools. If designated to the general IMS network, contributions are applied to the area of greatest need.
Can I take a federal charitable deduction if I receive an EITC/OSTC state tax credit?
Yes. Donors who participate in EITC or OSTC may be able to claim a federal charitable deduction for the portion of their gift not covered by the EITC credit (typically 10%), if they itemize.
What is the timing of when we have to make our contribution and what is the approval process?
New business participants can apply for tax credits directly with the state starting July 1 for the current tax year, with approvals sent out in the fall. Opportunities for individuals and businesses to join through our partner organizations, such as the Business Leadership Organized for Catholic Schools or the Foundation for Catholic Education, are available mostly on a rolling basis. Contributions can be made in the fall/winter, or in the spring, which is when tax-savvy commitments can be timed to offset quarterly estimated payments throughout the year. All contributions must be made within the tax year for which the credit is claimed. For example, contributions for 2026 must be made by December 31, 2026.
How soon will my gift be distributed?
Donations received prior to June 30 will be allocated for the fall semester of that school year. Monies received after July 1 will be distributed for fall of the following school year.
Is a tax credit the same as a charitable gift?
No. Charitable gifts to IMS typically support the network’s physical plant, programming, endowment, etc. Tax credit programs like EITC allow donors to steer their tax dollars specifically towards the funding of scholarships.
What about large one-time tax events like the sale of a business?
Individuals and businesses facing a large one-off PA tax liability from a liquidity event can utilize tax credit giving to receive a 90% tax credit, making it an extremely powerful way to align tax planning with charitable impact.
Get in Touch with an IMS EITC Specialist
Brett Foley, Director of Tax Credit Giving, is happy to answer any questions, provide guidance, and walk you through the simple process of making a tax credit gift. Submit the form below and he’ll be in touch.