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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=17659
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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: March 3, 2015 05:25 PM
From: Representative Jim Christiana and Rep. Mike Turzai, Rep. Stan Saylor, Rep. Thomas J. Quigley
To: All House members
Subject: Increased Tax Credit for EITC & OSTC Programs
 
In the near future, I plan to introduce legislation that will increase the amount of available tax credits for the Educational Improvement Tax Credit (EITC) program from $100 million to $170 million, and the amount of available tax credits for the Opportunity Scholarship Tax Credit (OSTC) program from $50 million to $80 million.

The EITC program provides tax credits to businesses which make contributions to scholarship organizations (SOs) offering scholarships to children in Kindergarten through grade 12, educational improvement organizations (EIOs) providing funding for innovative educational programs in public schools, and pre-kindergarten scholarship organizations (PKSOs) offering scholarships to children enrolled in pre-kindergarten programs. The amount of available tax credits for the EITC program is currently set at $100 million, with $60 million allocated to SOs, $30 million allocated to EIOs and $10 million allocated to PKSOs. My bill will increase available tax credits for the EITC program to $170 million, which will be allocated in the same proportions as currently provided in statute as follows: $102 million to SOs; $51 million to EIOs; and $17 million to PKSOs.

The OSTC program, which was established in 2012 based on the model of the EITC program, provides tax credits to businesses which make contributions to opportunity scholarship organizations (OSOs) offering scholarships to children in Kindergarten through grade 12 who reside within the attendance boundaries of “low-achieving schools” (those schools in the lowest 15% of their designation as an elementary or secondary school). This program also directs scholarships towards low income families by requiring OSOs to give preference to applicants whose household income is within 185% of the Federal poverty level. The amount of available tax credits for the OSTC program is currently set at $50 million. My bill will increase available tax credits for the OSTC program to $80 million.

Both the EITC and OSTC programs are very successful programs that have given thousands of Pennsylvania children school choice and the opportunity to participate in innovative educational programs. By expanding the EITC and OSTC programs, my bill will allow even more children to benefit.

Please join me in co-sponsoring this legislation. If you have any questions, please do not hesitate to contact me.



Introduced as HB752