Michael Sauers

June 6, 2026

The Pennsylvania Educational Improvement Tax Credit , EITC, is a highly beneficial tax break and a means to short change public education. Unlike a deduction that merely lowers taxable income, an EITC credit directly reduces your state tax bill on a dollar-for-dollar basis. This is very clever. While the EITC does not directly take revenue out of public school budgets, it diverts potential state revenue before it enters the state general fund. Critics argue that this reduces the total pool of available tax money that could otherwise be allocated to public education, state parks, highways, etc.

The PA EITC is highly controversial. While enthusiastically supported in business, private/religious schools and non-profit circles, it is strongly criticized by public education advocates. While diverting millions of dollars in tax revenue from public schools, it channels that revenue to private, often religious, institutions which lack public accountability and transparency and are often accused of discriminatory practices based on disabilities, sexual orientation and religion.

The vast majority of EITC funding goes toward scholarships for students to attend private or religious schools. Does this pass the Pennsylvania Constitution smell test? Many argue no! Critics argue that PA’s EITC program violates Article III , Section 15 and Article III, Section 29. Do some research.

EITC is twenty-five years old. It started under Governor Ridge. Over this time, the program has diverted more than 3.5 billion in state revenues to fund private, religious and pre-K schooling as well as Educational Improvement Organizations (EIO). This year’s allocation (2025-2026) is 680 million dollars.

The list of EIO’s in Pennsylvania who help divert money away from public schools is quite robust with over 800. REMEMBER, PENNSYLVANIA PUBLIC SCHOOLS HAVE BEEN UNDERFUNDED FOR DECADES! A complete list of Educational Improvement Organizations can be found at Pennsylvania Department of Community & Economic Development. You will be surprised. There is a list effective 01/01/2026-12/31/2026. This is a very revealing list that raises many, many questions. You be the judge.