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Pennsylvania Business Tax Credit

PA Business Tax Credit

You can turn your PA tax liability into need-based scholarships for students of The Circle School!

Thanks to Pennsylvania’s education tax credit programs (Educational Improvement Tax Credit – EITC, Opportunity Scholarship Tax Credit – OSTC), your business can earn a 90% tax credit for gifts up to $750,000 per year.

This means that if you make a donation of $10,000 to a scholarship fund you will receive $9,000 back as you file your quarterly or annual tax payments, leaving a net cost to you of only $1,000!

The Circle School is a state-approved Scholarship Organization, ready to receive your donations to EITC (pre-K and K-12) and OSTC. 100% of your donation will be awarded to income-qualified children.

By the way, individuals in PA who pay personal income tax can take advantage of these tax credits too! Learn more about the personal income tax credit here.

 

Meet our current donors

During the 2025-26 school year, these generous businesses donated $25,500 that The Circle School was able to give as scholarships to deserving students.

We give a special thank you to First National Bank, Weis Markets, Radish and Rye Food Hub, and Orrstown Bank who have contributed for 4 years in a row for a total of $78,000! Thank you so much for making The Circle School accessible to more kids!

 

How to give

Many different types of businesses are eligible for these tax credits, including:

  • LLCs
  • LLPs
  • C-Corporations
  • S-Corporations
  • Partnerships

Some of the eligible taxes that the credits can be used against include:

  • PA Corporate Net Income
  • PA Personal Income
  • Insurance Gross Premiums
  • Bank & Trust Shares
  • PA Capital Stock / Foreign Franchise
  • Title Insurance
  • Mutual Thrift Institutions
  • Surplus Lines

Talk with your accountant to determine the amount of credit that you are eligible for, given how much PA tax your business pays.

Option 1: Penngift Foundation

The simplest way for your business to receive an EITC credit for your contribution is to donate through the Penngift Foundation. Penngift accepts two rounds of donations each year: one in the spring and one in the fall.

Once your donation is received, you will receive the paperwork that you need in order to receive a tax credit. Your tax credit can then be applied to your next quarterly tax payment(s).

We will update this page with detailed donation information about the spring 2026 round in late February or early March 2026.

Penngift has a document of frequently asked questions that may be helpful: FAQ.

Option 2: DCED application

If your business is able to commit to making two equal contributions in two consecutive years, you can apply directly to the state of PA for the tax credit on July 1, 2026. More information is available on the Department of Community and Economic Development’s EITC website.

Applications are processed on a first-come, first-served basis, so it is important to apply as close to July 1 as possible.

The Circle School has many students who are eligible for OSTC scholarships, so be sure to indicate that you are willing to receive OSTC credits if EITC credits are no longer available.

 

Any questions?

For more information, contact the school at:
717-564-6700
office@circleschool.org

 

About The Circle School

Founded in 1984, The Circle School is nonprofit, tax-exempt, and independent, serving children from preschool through high school. Unlike most independent schools, The Circle School’s families represent an income profile that matches the Central Pennsylvania region we serve. Our families’ median income matches that of our catchment area—and yours. Our graduates attend college and earn degrees at high rates. 

The Circle School admits students on a first-come, first-served, open admissions basis. Admissions are blind to financial need, and families pay only what our financial aid process determines they can afford. Each year the school grants more than $275,000 in financial aid. The school depends heavily on the generosity of business and individual donors.