The Wolf administration has directed letters to be sent out to companies (and individuals) notifying them that their applications to the Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs have been conditionally approved even though the 2015-2016 state budget has not yet been finalized.
The EITC program was created in 2001 to allow businesses to donate to state-approved organizations in order to earn credit toward state taxes owed. The OSTC program was created in 2012 to provide scholarships to students in poor-performing public schools so they can attend a higher-performing public or private school.
The Pennsylvania Department of Community and Economic Development, which administers both programs, held off on awarding tax credits to companies until a state budget was in place. Given the prolonged budget stalemate, the decision was made to release conditional approval letters for tax filing purposes, and to make clear that the credit may be available for use on 2015 tax liabilities upon final enactment of a 2015-2016 budget.
The delay in approving the applications for taxpayers has represented a number of difficult circumstances for taxpayers and recipient not-for-profit organizations.
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