Pennsylvania Opportunity Scholarship Tax Credit (OSTC)

Frequently asked questions

What is the Pennsylvania Opportunity Scholarship Tax Credit?

It is a business tax credit for a contribution to an opportunity scholarship organization. The organization awards scholarships to eligible students who live in the attendance boundary of a low-achieving school. A student can use the scholarship at a nonpublic school or at a public school outside the student's district. The Department of Community and Economic Development administers the credit.

What is a low-achieving school?

PDE's 2026-27 list names 380 public elementary and secondary schools. A school is listed when it ranked in the lowest 15 percent of its elementary or secondary designation for the 2024-25 school year, based on combined Mathematics/Algebra I and ELA/Reading/Literature scores from the annual assessments (PSSA, PASA, and Keystone) administered in 2025. Charter schools, cyber charter schools, and area career and technical schools are excluded. PDE also removed closed schools and special education schools.

Which schools accept OSTC students in 2026-27?

PDE's workbook "Schools to Receive Students with Opportunity Scholarships in the 2026-27 School Year" names 406 schools in 48 counties, counting a school once per county. The sheet repeats a school when the school reports more than one student group. The Pennsylvania Department of Education (PDE) does not endorse nor recommend any of the schools on this list. PDE simply provides the information given to us by the schools as a resource for parents that are seeking schools that may enroll students from the OSTC program.

How does a family apply for an OSTC scholarship?

Families apply through an approved opportunity scholarship organization, not through DCED or PDE. DCED's list effective January 1, 2026 through December 31, 2026 had 157 organizations on October 10, 2026. DCED updates that list through the year. Household income may be no greater than $122,322 plus $21,531 for each dependent member of the household. For the 2025-26 school year, DCED states the maximum scholarship is $8,500, or $15,000 for a special education student.

Has Pennsylvania opted in to the federal scholarship tax credit?

Pennsylvania has not yet decided whether to opt in to the federal scholarship tax credit program. A taxpayer could claim a federal tax credit of up to $1,700 per taxpayer ($1,700 single, $3,400 married filing jointly) for a cash gift made on or after January 1, 2027 only if Pennsylvania files its election and submits its SGO list. On October 7, 2026, Gov. Josh Shapiro said, "I'm very open to this," and that he expects to announce in the next few weeks whether Pennsylvania will opt in. Pennsylvania's status on this site remains No Decision Yet. NBC10 Philadelphia published the debate quote on October 7, 2026. The election deadline is January 1, 2027.