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School Choice Bill Introduced in PA House
While the debate over SB 1 continues over in the Pennsylvania Senate, Rep. Tom Quigley has introduced HB 1330 in the other chamber.
HB 1330 would expand the Educational Improvement Tax Credit (EITC) to $100 million next year, and $200 million in FY 2012-13. In 2011-12, $75 million would be available for scholarships ($8 million for pre-K and $67 million for K-12) and $25 million for Education Improvement Organizations; there is no required split in 2012-13, except for the $8 million limit on pre-K scholarships.
This year, the EITC is capped at $60 million, with $46 million dedicated to scholarships.
| Educational Improvement Tax Credit Limits Under HB 1330 (in millions) | ||||
| Year | Scholarship Organizations | Pre-K Scholarship Organizations | Educational Improvement Organizations | Total EITC Credits |
| 2005-06 | $36.00 | $5.00 | $18.00 | $59.00 |
| 2006-07 | $36.00 | $5.00 | $18.00 | $59.00 |
| 2007-08 | $44.70 | $8.00 | $22.30 | $75.00 |
| 2008-09 | $44.70 | $8.00 | $22.30 | $75.00 |
| 2009-10 | $38.00 | $6.40 | $15.60 | $60.00 |
| 2010-11 | $40.20 | $6.40 | $13.40 | $60.00 |
| 2011-12 | $67.00 | $8.00 | $25.00 | $100.00 |
| 2012-13 | $8.00 | $200.00 | ||
Scholarships generated through the EITC (enacted in 2001) assist parents in paying tuition at their school-of-choice. Pennsylvania companies receive a 75 to 90 percent tax credit for voluntarily donating to a scholarship organization. The average scholarship amount is a little more than $1,000, and the average family income of scholarship recipients is $29,000. Over 38,000 students received EITC scholarships in 2010, serving 2.2 percent of Pennsylvania’s schoolchildren.
The bill would also increase the family income limits for EITC scholarship eligibility.
| EITC Scholarship Income Limits Under HB 1330 | ||
| Year | Base Family Income | Additional Income Per Child |
| 2010-11 | $50,000 | $10,000 |
| 2011-12 | $60,000 | $12,000 |
| 2012-13 | $75,000 | $15,000 |
| 2013-14 | $75,000 + CPI | $15,000 + CPI |