About

Pennsylvania made history in May 2001 by becoming the first state to pass an education tax credit aimed at corporations – the Education Improvement Tax Credit program.

Because of its overwhelming initial success, Pennsylvania expanded the program in 2003 to include Pre‐Kindergarten. The legislature has increased the cap on the EITC Program and the Pre‐K EITC four times since its enactment in 2001 – to a current cap of $60 million.

The EITC program provides companies with a 75% tax credit for donations to a non‐profit scholarship or educational improvement organization up to a maximum of $300,000 per taxable year. The tax credit increases to 90 percent, up to $300,000 per taxable year, if the company commits to making the same donations for two consecutive years.

For contributions to Pre‐Kindergarten Scholarship Organizations, a business may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90% of the remaining amount contributed up to a maximum credit of $150,000 annually.

Most importantly, the EITC provides children and families with a choice in their education ‐‐ and a better chance in life.

Since the program’s inception:

• More than 3,600 companies have become donors.
• Approximately $490 million has been contributed to EITC organizations.