Pa. DCED Publishes Opportunity Scholarship Guidelines; Scholarships to be Available for Upcoming School Year

News provided by

Pennsylvania Department of Community & Economic Development

Aug 01, 2012, 10:33 ET

HARRISBURG, Pa., Aug. 1, 2012 /PRNewswire-USNewswire/ -- The Department of Community and Economic Development (DCED) today published the guidelines for the Opportunity Scholarship Tax Credit Program, developed to enhance the educational opportunities for students in low-achieving schools.

In July, Governor Tom Corbett signed into law the Opportunity Scholarship Tax Credit Program, making $50 million in tax credits available to businesses that contribute to approved opportunity scholarship organizations.

"The governor is committed to providing students with the best opportunity to access quality educational programs," DCED Secretary C. Alan Walker said. "This new and innovative program is a win for everyone, as businesses will be able to help students in their communities transfer from low-achieving schools to higher performing schools."

The guidelines published today outline the application processes for businesses and opportunity scholarship organizations. Organizations that want to be included on the department's list of approved Opportunity Scholarship Organizations may begin applying immediately.

Pennsylvania businesses can begin applying for Opportunity Scholarship Tax Credits through DCED's electronic single application system beginning on August 8. Tax credit applications will be processed on a first-come, first-served basis by day submitted. All applications received on a specific day will be processed on a random basis before moving on to the next day's applications. Applications will be approved until the amount of available tax credits is exhausted.

Tax credits may be applied against the tax liability of a business for the tax year in which the contribution was made. The tax credits awarded to businesses will be equal to 75 percent of their contribution amount, which can be increased to 90 percent upon the business committing for two years. The total may not exceed $400,000 per taxable year.

To help parents and students identify potential scholarship opportunities, the department will also publish a list of approved Opportunity Scholarship Organizations on the web at www.newpa.com/ostc. Parents and students should work through approved opportunity scholarship organizations, not DCED, to participate in this program.

Students who live within the attendance boundaries of a low-achieving school, as determined by the Pennsylvania Department of Education, are eligible to receive a scholarship if their household's annual income is no greater than $60,000, plus $12,000 for each dependent member of the household.

For the 2012-13 school year, the maximum scholarship award available to non-special education students is $8,500 and the maximum for a special education student is $15,000.

The PA Department of Education will be publishing a list of schools both public and nonpublic that have enrolled in the Opportunity Scholarship Program and accept transferring students. Participating schools are required to submit the proper enrollment forms to the PA Department of Education.

For more information about the Opportunity Scholarship Tax Credit Program, visit www.newpa.com/ostc.

To view the list of low-achieving schools, visit the Department of Education's website at www.education.state.pa.us and click on the Opportunity Scholarship Tax Credit Program icon.

Media Contact: Steven Kratz, 717-783-1132

SOURCE Pennsylvania Department of Community & Economic Development