EITC evolves after the failed school choice battles during the Ridge Administration. Advocates and Governor Ridge were looking for alternative ways to empower parents.
Compromise struck to help both public schools and families looking for school choices. $30 million K-12 tax credit created.
2003
During protracted education budget battle with Governor Rendell, EITC expanded to $40 million and $5 million pre-k EITC program created to empower parents with pre-k age children.
2005
Advocates lead charge — in a difficult budget year — to increase K-12 EITC to $44 million. Pre-K EITC remains capped at $5 million.
2006
The legislature adds an additional $10,000,000 in tax credits to the EITC program.
2007
The Legislature adds an additional $16 million to the incredibly popular EITC program. Tax credits increase 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 $8,000,000 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 though the pass-though entity.
More information about the Educational Improvement Tax Credit Program can be found here.
