1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in educational improvement tax credit, further
11providing for limitations.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1.  Section 1706-F(a) of the act of March 4, 1971 
15(P.L.6, No.2), known as the Tax Reform Code of 1971, amended 
16July 2, 2012 (P.L.751, No.85), is amended to read:

17Section 1706-F.  Limitations.

18(a)  Amount.--

19(1)  [The] For each fiscal year through fiscal year 2011-
202012, the total aggregate amount of all tax credits approved
21shall not exceed $100,000,000 in a fiscal year. No less than

1$60,000,000 of the total aggregate amount shall be used to
2provide tax credits for contributions from business firms to
3scholarship organizations. No less than $30,000,000 of the
4total aggregate amount shall be used to provide tax credits
5for contributions from business firms to educational
6improvement organizations.

7(2)  The following apply to specific fiscal years:

8(i)  For fiscal years 2004-2005, 2005-2006 and 2006-
92007, the total aggregate amount of all tax credits
10approved for contributions from business firms to pre-
11kindergarten scholarship programs shall not exceed
12$5,000,000 in a fiscal year.

13(ii)  For fiscal years 2007-2008, 2008-2009, 2009-
142010, 2010-2011 and 2011-2012, the total aggregate amount
15of all tax credits approved for contributions from
16business firms to pre-kindergarten scholarship programs
17shall not exceed $8,000,000 in a fiscal year.

18(iii)  For fiscal year 2012-2013 and each fiscal year
19thereafter, the total aggregate amount of all tax credits
20approved for contributions from business firms to pre-
21kindergarten scholarship programs shall not exceed
22$10,000,000 in a fiscal year.

23(3)  (i)  For the fiscal year 2012-2013, the total 
24aggregate amount of all tax credits approved shall not
25exceed $100,000,000.

26(ii)  Not more than $67,000,000 of the total 
27aggregate amount of all tax credits approved shall be
28used to provide tax credits for contributions from
29business firms to scholarship organizations.

30(iii)  Not more than $25,000,000 of the total 

1aggregate amount of all tax credits approved shall be
2used to provide tax credits for contributions from
3business firms to educational improvement organizations.

4(iv)  Not more than $8,000,000 of the total aggregate
5amount of all tax credits approved shall be used to
6provide tax credits for contributions from business firms
7to prekindergarten scholarship organizations.

8(4)  (i)  For the fiscal year 2013-2014 and each fiscal
9year thereafter, the total aggregate amount of all tax
10credits approved shall not exceed the total aggregate
11amount from the previous fiscal year as specified in this
12subsection plus the greater of:

13(A)  $10,000,000; or

14(B)  A cost-of-living adjustment equal to the
15total aggregate amount from the previous year times
16the percentage increase in the Consumer Price Index
17for All Urban Consumers (CPI-U) for the Pennsylvania,
18New Jersey, Delaware and Maryland areas between the
19most recent 12-month period for which figures have
20been officially reported by the United States
21Department of Labor, Bureau of Labor Statistics and
22the second most recent 12-month period.

23(ii)  Not more than 60% of the total aggregate amount
24of all tax credits approved shall be used to provide tax
25credits for contributions from business firms to
26scholarship organizations.

27(iii)  Not more than 30% of the total aggregate
28amount of all tax credits approved shall be used to
29provide tax credits for contributions from business firms
30to educational improvement organizations.

1(iv)  Not more than 10% of the total aggregate amount
2of all tax credits approved shall be used to provide tax
3credits for contributions from business firms to
4prekindergarten scholarship organizations.

5* * *

6Section 2.  This act shall take effect in 60 days.