Enacted 2001 | Began Operation 2001 • Tax-Credit Scholarship
Pennsylvania provides tax credits for corporate contributions to Scholarship Organizations,
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 $400,000 per company, while in 2013 and beyond, the maximum 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 $60 million.
Latest Stats (2011-12)
- Students participating: 45,100
- Schools participating: n/a
- Scholarship organizations: 257
- Average scholarship value: $990
Program Details
Average scholarship value as a percentage of
Pennsylvania’s total per-student spending ($12,729)
Student Funding
Scholarship Organizations are able to determine scholarship amounts.
Student Eligibility
Children are eligible for scholarships if their household incomes are less than $60,000 plus
$12,000 for each child in the family. In 2013, the figures rise to $75,000 in base household
income plus $15,000 per child, which will increase in future years to account for inflation.
Legal Developments
No legal challenges have been filed against the program.
Rules & Regulations
- Income Limit: $84,000 (e.g. family of four)
- Geographic Limit: Statewide
- Enrollment Cap: None
- Scholarship Cap: Full Tuition
- Testing Mandates: None
- Credit Value: 75%/90%
- Credit Cap: Yes
- Program Cap: $44.5 million
Governing Statutes
Tax Reform Code of 1971, Article XVII-F, Sections 1701-F to 1708-F
Friedman Contact
Stephanie Linn | stephanie@edchoice.org
Additional Links
Text: Tax Reform Code of 1971, Article XVII-F, Sections 1701-F to 1708-F
