Each year, thousands of Pennsylvania businesses use the Educational Improvement Tax Credit (EITC) to provide low- and middle-income families with private school scholarships. Thanks to the EITC, businesses can redirect part of their tax bill away from state government and send those funds to scholarship-granting non-profits.
Since 2001, the EITC has been a pillar of school choice in the commonwealth, allowing K-12 students to receive financial aid to attend schools that best fit their needs.
As part of the recent state budget agreement, lawmakers passed a massive expansion of the EITC. In 2016, the state will award $125 million in scholarship tax credits, a $25 million increase over last year. This means more scholarships to students in need, and fewer dollars funneled to Harrisburg for general government functions. A win for families and taxpayers alike.