Redirect your PA state tax liability for a 90% tax credit

Fund need-based scholarships for Philadelphia area students to attend Catholic Pre-K, grade, and high schools while receiving a 90% tax credit

Program Overview

Through the establishment of Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs, donors can receive up to a 90% tax credit against their personal PA state tax liability by making their gift through BLOCS.

An individual or company who wishes to take advantage of this tax-credit program may become a member of a BLOCS Scholarship LLC (“LLC”) with a 2-year commitment to fund the LLC. These credits will be distributed to each member via K-1 and are then applied to your PA tax liability for the tax year in which the donation is made.

What types of taxes can be offset by this credit?

Individuals who pay Pennsylvania income taxes and businesses that are authorized to do business in Pennsylvania who are subject to one or more of the following taxes:

  • Personal Income Tax, Sub-chapter S-corporations and other “pass-through” entities will be able to use the credit against the shareholders’, members’, or partners’ PA personal income taxes

  • Corporate Net Income Tax

  • Malt Beverage Tax

  • Bank and Trust Company Shares Tax

  • Insurance Premiums Tax (excluding surplus lines, unauthorized, domestic/foreign marine)

  • Mutual Thrift Institutions Tax

  • Title Insurance Companies Shares Tax

  • Retaliatory Fees under Section 212 of the Insurance Company Law of 1921

Becoming a Donor is Simple

  1. Make a 2-year commitment to a scholarship donation through BLOCS by redirecting your Pennsylvania state tax liability.

  2. You then sign your LLC agreement and write your check to BLOCS. We then disperse the funds to the school of your choice or that of greatest need if your gift is undesignated.

  3. BLOCS provides you with a K-1 for your donation, and your 90% tax credit is issued to you by the state.

  4. Your tax credit can either be used to fund your year 2 commitment to BLOCS, or it can nearly double your annual donation to your designated school.

PA Tax Program Participant Estimator

We invite you to use the calculator below to estimate your possible gift through the PA Tax Credit program. Enter your taxable income in Pennsylvania and your filing status. If the estimated minimum yearly donation is more than $3,000 you are eligible to enroll in the program. Adjust the yearly donation amount, to see what the actual cost to you will be after the credits and deductions have been applied.


This tool is for informational purposes only and we do encourage you to contact your tax professional if you would like to enroll in the PA State Tax Credit Program with BLOCS.

Taxable Income

PA State Tax Liability
0
Federal Tax Liability
0

Yearly Donation (2 Year Commitment Required)

There is a minimum contribution amount of $3,000 to enroll in the program, and based on your PA State Tax Liability, your maximum donation amount is less than $3,000.
This calculation assumes federal tax brackets as of the 2023 tax year. Always consult with your tax advisor regarding your individual financial situation.

Contact the Team to Get Started

Stephanie Maiocco

Jeff Gibson

Jim Downey

Eligible participants to the tax credit program, referred to below as “donors” include:

  1. Individuals who pay Pennsylvania income taxes and

  2. Businesses that are authorized to do business in Pennsylvania, and are subject to one or more of the taxes listed above

Tax Program FAQ’s

  • The Educational Improvement Tax Credit (EITC) and Opportunity Scholarship Tax Credit (OSTC) programs provide donors with a tax credit for their donations to nonprofit Scholarship or Education Improvement Organizations such as BLOCS.

    A scholarship donation for K through 12 students can earn a 75% tax credit for a one-year commitment or a 90% credit for a two-year commitment. A one-time donation for Pre-K students can result in a 100% tax credit for the first $10,000; and a 90% tax credit for the remainder up to $200,000.

  • There is no limit to the amount a donor can contribute to the EITC & OSTC programs.

  • Yes. A donor that receives a state tax credit through the EITC/OSTC program may still take a charitable deduction for their gift on both their federal and state tax returns as allowed by law. This is in addition to the EITC & OSTC tax credits they will receive against their state tax liability. Please consult your tax advisor on specifics.

  • These programs allow a donor to direct where a portion of their tax dollars are spent. These are dollars that you would already be paying to the state of Pennsylvania. It also allows the donor to support the schools and local community.

  • Your donation plays a vital role in allowing all students the opportunity to attend an Archdiocesan school regardless of race, religion, or ability to pay. The School then designates which qualified students are provided assistance.

  • Approximately 6.5 cents on the dollar, or $650 for a $10,000 donation.

  • Any new donor can apply for tax credits starting July 1 for the current year.

  • 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.

  • You cannot designate your donation to a specific student. You do however, have the option to designate the money to a specific school. The schools, not BLOCS, each have the ability to designate funding to qualified students.

  • Listing of schools that BLOCS supplies tax credit scholarships can be found here. Don’t see your institution listed? Please contact us

Download the
Tax Credit Program Overview Brochure →

Need expert guidance?

BLOCS works with trusted financial professionals who understand the Pennsylvania tax credit program and can gladly assist in managing the donation process with BLOCS from start to finish. Contact them to learn more and discuss your unique financial situation.