Many parents want the best education for their children by sending them to private schools. They have an environment where a child can develop emotionally, socially, and intellectually. However, tuition costs for private schools can be expensive. Thankfully, with the help of Pennsylvania’s Educational Improvement Tax Credit (EITC) Program, families may not have to worry about paying for their child to attend a private school. The Educational Improvement Tax-Credit program is a program that provides tax credits to businesses and individuals who make contributions to nonprofit organizations. The organization then uses these funds for scholarships.
In this post, we will discuss what this program is, how it benefits your child, and why it may be right for your family!
What is the EITC program and how does it work?
The Pennsylvania Educational Improvement Tax Credit program offers a tax credit to eligible businesses who invest in our children’s future by donating to scholarship-granting organizations. The business’s credit depends on how much they donate, so it provides an incentive and tangible benefit for those looking into supporting the cause of school choice.
A business can receive a 75% tax credit on donations made to approved scholarship granting organizations. Moreover, it can get up to 90% if the business is committed to donating for two consecutive years. Eligible businesses can get a maximum tax credit of $750,000 annually.
How much money can you receive from the EITC program?
Once you have applied and approved for a scholarship, the funds are allocated based on the school’s tuition assistance guidelines of your child and in compliance with the PA State Education tax credit program guidelines. Scholarship funds are directly sent to the school of your choice to use towards their education fees.
With these scholarship funds, your child can experience high-quality education they can use for advancement to their future. As a parent, you don’t have to worry about the costs of sending your child to a private institution.
How do I apply for this program as a parent?
The following are the guidelines for student eligibility for the EITC program.
Household income does not exceed $92,160 plus $16,222 per dependent child in the family. For example, for a family with two children, the maximum income allowed to participate in this program is $124,604.
- No prior year public school requirement
- No enrollment cap
- Full tuition
- Statewide geographic limit
- No testing mandates
If you are a parent and you think your family qualifies for the Educational Improvement Tax Credit program, you can apply for a scholarship directly with the school.
The Educational Improvement Tax-Credit provides an opportunity for children to have high-quality child education. It enables parents to go to work, confident that their children are in a safe and nurturing environment where they can learn new things every day and grow as individuals.
This tax credit program is a great investment for businesses as it helps all of us. It breaks the cycle of poverty in the community, saves the taxpayers money, and produces highly educated workers for the future of the country.