What is EITC?

Pennsylvania provides tax credits for corporate contributions to Scholarship Organizations (SOs) -nonprofits that provide private school scholarships, or Educational Improvement Organizations (EIO) -nonprofits that support innovative programs in public schools. Tax credits are worth 75 percent of the contribution; however, a 90 percent credit can be claimed if the corporation commits to two consecutive annual contributions.

In either case, the maximum tax credit is $750,000 per company. Credits are awarded to companies on a first-come, first-served basis until the cap is reached. The total amount of tax credits is limited to $200 million.¬† In 2014 due to a law change companies began passing¬† thru EITC tax credits to individual donors in business entities called Special Purpose Entities (SPE’s).

Student Funding

Children are eligible for scholarships if their household incomes are not more than $96,676 plus $17,017 for each child in the family for 2021. For example, a family with one child must have an income below $113,693 whereas a family with three children must have an income below $147,727 The figures will increase in future years to adjust for inflation.

(Current as of May 21, 2022.)

Student Funding

Children are eligible for scholarships if their household incomes are not more than $96,676 plus $17,017 for each child in the family for 2021. For example, a family with one child must have an income below $113,693 whereas a family with three children must have an income below $147,727 The figures will increase in future years to adjust for inflation.

(Current as of May 21, 2022.)

Rules & Regulations

Income Limit: $96,676 + $17,017/child
Prior Year Public School Requirement: None
Geographic Limit: Statewide
Enrollment Cap: None
Scholarship Cap: Full tuition
Testing Mandates: None
Credit Value: 75 percent / 90 percent
Total Credit Cap: Yes
Budget Cap: $200 million

(Current as of May 21, 2022.)