Pennsylvania Tax Credits
The Commonwealth of Pennsylvania was the first state to create educational tax credits, now allowing individuals and businesses to make donations to approved scholarship and educational improvement organizations and receive a dollar-for-dollar tax credit for up to 90% of the donation. Donors are thus able to redirect their Pennsylvania personal or business tax liability to fund need-based scholarships.
The program is administered by the PA Department of Community and Economic Development, which manages various incentive programs to support community growth.
EDUCATIONAL IMPROVEMENT TAX CREDIT (EITC)
Launched by the Pennsylvania legislature in 2001, the PA EITC Program offers tax credits to individuals and corporations for donating to organizations that provide scholarships to independent schools for low and middle income families, as well as to organizations that support innovative public school programs.
OPPORTUNITY SCHOLARSHIP TAX CREDIT (OSTC)
Launched in 2012-13, the PA OSTC program provides funding to organizations to distribute in the form of scholarship awards to eligible students residing within the attendance boundary of a low-achieving public school. The scholarship awards allow eligible students to attend a independent school or a public school outside of their district of residence.
PRE-KINDERGARTEN SCHOLARSHIP TAX CREDIT (PKTC)
The PA PKTC program allows for contributions to support need-based scholarships for children three to six years of age attending Pre-Kindergarten programs that utilize a curriculum consistent with their affiliated school.
