Bridging education opportunities through public private partnerships

About the EITC Program

History

2001

EITC evolves after the failed school choice battles during the Ridge administration. Advocates and Governor Ridge were looking for alternative ways to empower parents.

A compromise was struck to help both public schools and families looking for school choices. $30 million in K-12 tax credits were created.


2003

During a protracted education budget battle with Governor Rendell, EITC expanded to $40 million and a $5 million Pre-K EITC Program was created to empower parents with Pre-K age children.


2005

Advocates lead a charge in a difficult budget year to increase K-12 EITC to $44 million. Pre-K EITC remained capped at $5 million.


2006

The legislature added an additional $10 million in tax credits to the EITC Program.


2007

The legislature added an additional $16 million to the incredibly popular EITC Program. Tax credits increased from $59 million to $75 million, with $44,666,667 dedicated to scholarships, $22,333,333 dedicated to innovative educational Programs in public schools, and $8 million dedicated to Pre-Kindergarten scholarships.


2008

The legislature amends the EITC to allow S Corporations to claim EITC credits against their Pennsylvania personal income tax paid through the pass-through entity.


2009

The EITC Program suffers its first cut back. The legislature decreases the amount of available tax credits to $38,000 for scholarships, $15.6 million for educational improvement, and $6.4 million for pre-kindergarten scholarships.


2010

The EITC Program was funded at a level of $60 million this year! The previous year, the legislature planned to cut the Program by $10 million. The Program did not receive any further cuts.


2011

The EITC Program was recognized in May of 2011 for providing parents with a means of choice for 10 years. The EITC Program received a great deal of attention during the legislative session as a way to expand choice to additional Pennsylvania families. The Program was expanded to encompass $75 million dollars in funding. Businesses quickly exhausted the additional tax credits and the Program maintained an extensive wait-list for potential business donors.


2012

The EITC Program was expanded to $100 million. Drawing on the EITC Program’s decade of success, the legislature and Governor Corbett created a new scholarship tax credit program, the Opportunity Scholarship Tax Credit (OSTC). In addition to the EITC Program, this separate $50 million OSTC Program would target scholarships to income–qualified families residing in school districts performing in the bottom 15% percentile.


2016

An additional $25 million is added to the EITC Program bringing totals to $75 million for Scholarships $37.5 million for Educational Improvement Programs and $12.5 million for Pre-Kindergarten Scholarships


More information about the EITC and the OSTC can be found here.