Opportunity Scholarship Tax Credit (OSTC)
🏛 Pennsylvania Department of Community & Economic Development
✓ Free, no account · Source: Pennsylvania Grants (CODE PA) · Last verified May 31, 2026
Can you apply?
This grant is for Pennsylvania businesses seeking tax credits for education scholarships. Applicants must contribute to an Opportunity Scholarship Organization. These contributions fund scholarships for students in low-achieving schools (bottom 15% by PSSA scores) to attend other public or nonpublic schools outside their district.
Eligible businesses can apply during two windows: May 15 (renewals and mid-commitment businesses) and July 1 (initial applicants and additional applications). Businesses make 2-year commitments to receive tax credit benefits.
Low-achieving schools are public elementary or secondary schools ranked in the bottom 15% based on combined math and reading PSSA scores.
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Program description
The program provides tax credits to eligible businesses contributing to an Opportunity Scholarship Organization. Business contributions are then used by Opportunity Scholarship Organizations to provide tuition assistance in the form of scholarships to eligible students residing within the boundaries of a low-achieving school to attend another public school outside of their district or nonpublic school. A low-achieving school is defined as a public elementary or secondary school ranking in the bottom 15 percent of their designation as an elementary or secondary school based upon combined math and reading Pennsylvania System of School Assessment (PSSA) scores. Sspecific dates: 5/15/2024: Business applicants who have fulfilled their 2-year commitment and wish to reapply in FY 24/25 to renew their 2-year commitment and Businesses who are in the middle of their 2-year commitment., 7/1/2024: All other businesses including initial applicants and those applicants wishing to submit an additional application on top of their previously submitted 2-year commitment.
Who can apply
Eligible applicants
Demographic focus
How to apply
Application links
Key dates & requirements
Required documents
- Business tax documentation
- Commitment letter (2-year)
- Contribution amount documentation
- Designated Opportunity Scholarship Organization partnership agreement
FAQ
Who can apply for the Opportunity Scholarship Tax Credit?
Pennsylvania businesses seeking tax credits for contributions to Opportunity Scholarship Organizations. Businesses must commit to a 2-year contribution cycle.
When are applications accepted?
Two windows: May 15 (renewals/mid-commitment businesses) and July 1 (new applicants and additional applications). Deadlines appear to be recurring annually.
What activities does the program support?
Business contributions that fund tuition scholarships. Scholarships help students from low-achieving schools attend alternative public or nonpublic schools outside their district.
How much can a business contribute?
Award range and minimum/maximum contribution amounts are not specified in program materials. Contact the agency for specific dollar requirements.
What makes an application competitive?
The program appears to prioritize alignment with low-achieving school improvement. Demonstrate clear commitment to education equity through sustained funding.
💡 Tips for applicants
- Clarify your 2-year commitment timeline and contribution amount before the application deadline. Missing the May 15 renewal window means waiting until July 1.
- Document which low-achieving schools (bottom 15% by PSSA) your scholarship funding will serve. Specific school targeting strengthens applications.
- Understand your state and local tax credit calculations. Tax credit value depends on state rules and business type.
- Track eligible student demographics and scholarship outcomes. Programs favoring schools with strong tracking records report better results.
- Start conversations with Opportunity Scholarship Organizations early. Building relationships ensures smooth contribution flow and student placement.
⚠️ Common mistakes
Applications miss the correct deadline window (May 15 vs. July 1) based on applicant type. Insufficient documentation of which low-achieving schools will benefit. Underestimating the administrative time needed for 2-year commitment compliance.
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