On May 7, 2001, by an overwhelming bipartisan majority, Pennsylvania made history by becoming the first state to pass an education tax credit aimed at corporations. Advocated by former Governor Tom Ridge and a diverse coalition, House Bill 966 – the Educational Improvement Tax Credit (EITC).
On June 30, 2012 House Bill 761 was passed into law expanding the popular Educational Improvement Tax Credit Program (EITC) and creating the Opportunity Scholarship Tax Credit Program (OSTC). The bill increased the funding for the EITC by $25 million, for a total of $100 million. The new $50 million OSTC program builds on over a decade of EITC success, using the same tax credit funding mechanism, where business contributions fund scholarships available to children from low and middle income families who reside in low-achieving school areas.
On November 4, 2014, House Bill 91 was passed into law consolidating the EITC and OSTC Programs into one statute and making changes to improve the operation of both programs.