School Choice Bill Introduced in PA House

While the debate over SB 1 continues over in the Pennsylvania Senate, Rep. Tom Quigley has introduced HB 1330 in the other chamber.

HB 1330 would expand the Educational Improvement Tax Credit (EITC) to $100 million next year, and $200 million in FY 2012-13. In 2011-12, $75 million would be available for scholarships ($8 million for pre-K and $67 million for K-12) and $25 million for Education Improvement Organizations; there is no required split in 2012-13, except for the $8 million limit on pre-K scholarships.

This year, the EITC is capped at $60 million, with $46 million dedicated to scholarships.

Educational Improvement Tax Credit Limits Under HB 1330 (in millions)
Year Scholarship Organizations Pre-K Scholarship Organizations Educational Improvement Organizations Total EITC Credits
2005-06 $36.00 $5.00 $18.00 $59.00
2006-07 $36.00 $5.00 $18.00 $59.00
2007-08 $44.70 $8.00 $22.30 $75.00
2008-09 $44.70 $8.00 $22.30 $75.00
2009-10 $38.00 $6.40 $15.60 $60.00
2010-11 $40.20 $6.40 $13.40 $60.00
2011-12 $67.00 $8.00 $25.00 $100.00
2012-13 $8.00 $200.00

Scholarships generated through the EITC (enacted in 2001) assist parents in paying tuition at their school-of-choice. Pennsylvania companies receive a 75 to 90 percent tax credit for voluntarily donating to a scholarship organization. The average scholarship amount is a little more than $1,000, and the average family income of scholarship recipients is $29,000. Over 38,000 students received EITC scholarships in 2010, serving 2.2 percent of Pennsylvania’s schoolchildren.

The bill would also increase the family income limits for EITC scholarship eligibility.

EITC Scholarship Income Limits Under HB 1330
Year Base Family Income Additional Income Per Child
2010-11 $50,000 $10,000
2011-12 $60,000 $12,000
2012-13 $75,000 $15,000
2013-14 $75,000 + CPI $15,000 + CPI