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)
SOs are able to determine scholarship amounts.
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.
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
Pa. Tax Reform Code of 1971, Article XVII-F §§ 1701F-1708F
Stephanie Linn | email@example.com
Application information from the Pennsylvania Department of Community and Economic Development