The Friedman Foundation for Educational Choice

Advancing Milton and Rose D. Friedman's Vision of School Choice for All Children

Pennsylvania - Educational Improvement Tax Credit

Enacted 2001 • Launched 2001 • Tax-Credit Scholarship

Pennsylvania provides tax credits for corporate contributions to Scholarship Organizations (SOs), nonprofits that provide private school scholarships, or Educational Improvement Organizations, 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 $100 million.

Latest Stats (2011-12)

  • Students participating: 59,218
  • Schools participating: N.A.
  • Scholarship organizations: 266
  • Average scholarship value: $990 (2011-12)

Program Details

Student Funding
SOs are able to determine scholarship amounts.

Student Eligibility
Children are eligible for scholarships if their household incomes are less than $75,000 plus $15,000 for each child in the family. For example, a family with one child must have an income below $90,000, whereas a family with three children must have an income below $120,000. The figures will increase in future years to account for inflation.

Legal Developments
No legal challenges have been filed against the program.

Rules & Regulations
• Income Limit: $75,000 + $15,000/child
• Prior Year Public School Requirement: None
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: Full tuition
• Testing Mandates: None
• Credit Value: 75 percent / 90 percent
• Total Credit Cap: Yes
• Budget Cap: $100 million

Governing Statutes
Pa. Tax Reform Code of 1971, Article XVII-F §§ 1701F-1708F

Friedman Contact
Stephanie Linn | stephanie@edchoice.org

Related Research

10/30/2014 The School Starter Checklist: Meeting the Private Education Regulations in States with School Choice
5/30/2014 Public Rules on Private Schools: Measuring the Regulatory Impact of State Statutes and School Choice Programs
6/5/2012 The Greenfield School Revolution and School Choice
2/5/2008 Grading School Choice: Evaluating School Choice Programs by the Friedman Gold Standard
10/1/2005 Using School Choice: Analyzing How Parents Access Educational Freedom
1/1/2003 Grading Vouchers: Ranking America’s School Choice Programs

Related News

3/12/2014 National Review Online | Choosing to Learn
1/23/2014 U.S. voucher, school choice enrollment reaches record high
8/15/2013 Sharing your story in “The ABCs” can be as easy as one, two, three
1/23/2013 “The ABCs of School Choice,” 2013 Edition, Now Available
10/25/2012 Philadelphia Tribune | School Choice Program Gets $99K Grant
7/3/2012 New School Choice Program Created in Pennsylvania
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10/27/2011 Pennsylvania Senate Passes Voucher Bill
10/4/2011 Hiner | DVAU School Voucher Debate - Philadelphia - Sept 24 2011
9/30/2011 Showdown in Pennsylvania
2/8/2011 Forbes.com | It's Time For School Choice In Pennsylvania
10/14/2010 Enlow | Robert Enlow's Testimony Before The Pennsylvania Senate Education Committee
9/2/2010 Enlow | Robert Enlow on Lowman Henry's Newsmakers

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