FAQs About the Tax Credit Program

Q:   What is the ACSI CTF?

A:   Coordinated by the ACSI Northeast Regional Office, the Children's Tuition Fund (CTF) of Pennsylvania is a scholarship program that provides tuition assistance for families with low to moderate incomes.

Q:   Where do the scholarship dollars come from?

A:   The ACSI CTF scholarship fund largely consists of tax credit contributions from Pennsylvania-based corporations and businesses (EITC, PKTC, OSTC).

Q:   What is the OSTC?

A:   The Opportunity Scholarship Tax Credit program (OSTC) provides eligible PA businesses with a tax credit based on their contribution to an approved OSTC scholarship organization, and where these contributions can be used to provide tuition assistance to eligible students residing within the boundaries of a low achieving school. The students can use this tuition assistance to attend a public or non-public school out of their district.

Q:   What are the EITC and PKTC legislations?

A:   The Educational Improvement Tax Credit (EITC) legislation of 2001 and the Pre-Kindergarten Tax Credit (PKTC) legislation of 2004 established tax credits for Pennsylvania-based corporations and businesses that make contributions to approved scholarship organizations or educational improvement organizations. These tax credits are awarded to corporations or businesses and can be applied to any of the following eligible taxes: capital stock and franchise tax, corporate net income tax, bank and trust company shares tax, title insurance company shares tax, title insurance premium tax, mutual thrift institution tax, and personal income tax of S-corporation shareholders or partnership partners.

Q:   How can the ACSI CTF benefit my school?

A:   Qualifying ACSI member schools and eligible families can receive scholarship monies for their students that are enrolled in pre-kindergarten (ages 3 and older) or grades K-12 programs.

Q:   What are the eligibility requirements for schools?

A:    Requirements

  •        An ACSI member in good standing
  •        Engaged in a formal school improvement plan (for participating K-12 only)
  •        Compliant with the ACSI CTF guidelines

Q:   What are the eligibility requirements for participating families?

A:  For scholarships awarded by the schools that have received designated tax credit contributions from businesses, participating families are required to meet the schools established guidelines which does not exceed $75,000 plus $15,000 per dependent child as established by EITC law. (Example: For a family with two children, the maximum income allowed to participate in this program would be $105,000.) Additional qualifications are explained in the EITC Income Eligibility Guidelines document on our website.

Q:   Can a school be proactive in seeking designated tax credit contributions?

A:   Yes!  Schools are greatly encouraged to make contacts with corporations and businesses that pay any one of the eligible taxes and to ask the business to designate its contribution to the school, while using the ACSI CTF as its scholarship organization. Contact the CTF office for strategic support.

Q:   Whom do I contact with questions?

A:   Contact the CTF Coordinator at the ACSI Northeast Regional Office at 717.285.3022 or CTF_NE@acsi.org.  

FAQs About the Tax Credit Programs