What is The Educational Improvement Tax Credit Program?
According to the Pre-K for PA Campaign, 69% of three and four year olds in Pennsylvania do not have access to high-quality, early education with $8,500 being the average cost of Pre-Kindergarten for one year.
In response to these challenges, the Commonwealth created The Educational Improvement Tax Credit (EITC) Program, giving businesses an opportunity to direct a portion of its tax credits to organizations that distribute Pre-K scholarships to at-risk families.
As a newly approved scholarship organization for the EITC program, PAEYC is now able to provide Pre-K scholarships to qualifying families.
As an approved scholarship organization for the EITC program, PAEYC is able to provide Pre-K scholarships to qualifying families.
To qualify, families must:
- Live in PAEYC’s 10 county service area (Allegheny, Armstrong, Beaver, Butler, Fayette, Greene, Indiana, Lawrence, Washington, or Westmoreland);
- Have a child who is three or four years old at the beginning of the school year;
- Have a child who is registered, enrolled or attending a high quality Pre-k program in Pennsylvania (Pre-K Counts, NAEYC Accredited or a Keystone STAR Rating of three or four); and
- Meet income requirements.
Scholarships may be used to pay for one year’s tuition, half or full day programs, and school-related fees including books, instructional materials, technology equipment and services, uniforms, and activities.
Scholarships are granted on a quarterly basis with upcoming deadlines on:
- June 1
- September 1
- December 1
- March 1
Companies who participate in PAEYC’s EITC may receive a tax credit equal to 100 percent of the first $10,000 contributed and up to 90 percent of the remaining amount contributed up to a maximum credit of $200,000 annually.
Businesses may apply the EITC tax credit against:
- Personal Income Tax;
- Capital Stock/Foreign Franchise Tax;
- Corporate Net Income Tax;
- Bank Shares Tax;
- Title Insurance & Trust Company Shares Tax;
- Insurance Premiums Tax (excluding surplus lines, unauthorized, domestic/foreign marine);
- Mutual Thrift Tax;
- Malt Beverage Tax; and
- Retaliatory Fees (under Section 212 of the Insurance Company law of 1921).
To learn more about PAEYC’s EITC Pre-K Scholarship Program call 412-421-3889.