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. 

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.

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 is going to be funded at a level of $60 million this year! Last year the Legislature put into their plan to cut the Program by $10 million during this fiscal year and we are happy to announce that the Program did not receive any further cuts.

The EITC Program was celebrated in May 2011 for providing parents a means of choice for 10 years.  The EITC program has received a great deal of attention during this legislative session as a way to expand choice to additional Pennsylvania families.  There are a number of proposals that would increase the amount of tax credits available as well as the number of families eligible to receive the scholarships.  The current allotment for the EITC Program stands at $75 million which is $15 million more than was available during the 10/11 fiscal year.