Educational Improvement Tax Credit (EITC) Program

This program, enacted in 2001,  offers tax credits for corporate contributions to certain nonprofit organizations. These nonprofit organizations then use those donations to provide low and middle income families with educational scholarships.

Funding

Corporate tax credits are provided for 75% of the contribution, but a 90% credit can be claimed if the corporation commits to two consecutive annual contributions. These credits are awarded to companies on a first-come, first-served basis until it reaches the established cap. The average per student scholarship benefit from this program is about $2,000.

Eligibility

Eligibility is determined by income. Currently, those with household incomes less than $96,676 plus $17,017 for each child are eligible. Students with special needs are also eligible if they come from a family earning 150% of the baseline income level, and those with the most severe special needs enrolled in special education-specific schools are eligible if they come from a family earning 299% of the baseline income level.