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