Pennsylvania - Educational Improvement Tax Credit • Tax-Credit Scholarship
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 $455 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).
PROGRAM DETAILS- Student Funding:
Scholarship Organizations are able to determine scholarship amounts.
Student Eligibility:
Children are eligible for scholarships if their 2021 household incomes are not more than $105,183 plus $18,514 for each child in the family for 2022/2023 school year. For example, a family with one child must have an income below $123,697 whereas a family with three children must have an income below $160,725 The figures will increase in future years to adjust for inflation.
Rules & Regulations:
Additional Information
Application information from the Pennsylvania Department of Community and Economic Development
Key features of the EITC:
90% tax credit for donors with 2 year commitment
Tax credit cannot be switched to the more popular Education Improvement (EI) tax credit in future years
Tax credits are typically only available May 15 for existing donors and July 1 for new donors.
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 $455 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).
PROGRAM DETAILS- Student Funding:
Scholarship Organizations are able to determine scholarship amounts.
Student Eligibility:
Children are eligible for scholarships if their 2021 household incomes are not more than $105,183 plus $18,514 for each child in the family for 2022/2023 school year. For example, a family with one child must have an income below $123,697 whereas a family with three children must have an income below $160,725 The figures will increase in future years to adjust for inflation.
Rules & Regulations:
- Income Limit: $105,183 + $18,514/child
- Prior Year Public School Requirement: None
- Geographic Limit: Statewide
- Enrollment Cap: None
- Scholarship Cap: Full tuition
- Testing Mandates: None
- Credit Value: 90 percent
Additional Information
Application information from the Pennsylvania Department of Community and Economic Development
Key features of the EITC:
90% tax credit for donors with 2 year commitment
Tax credit cannot be switched to the more popular Education Improvement (EI) tax credit in future years
Tax credits are typically only available May 15 for existing donors and July 1 for new donors.
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Central Pennsylvania Scholarship Fund is a 501C3 charity (814) 942-4406 CentralPAScholarshipFund@gmail.com