Please ensure Javascript is enabled for purposes of website accessibility Rivera’s bill to close EITC reporting gaps introduced

Rivera’s bill to close EITC reporting gaps introduced

Pennsylvania House Democratic Caucus    June 12, 2026 | 4:54 PM

HARRISBURG, June 12 – State Rep. Nikki Rivera, D-Lancaster, today introduced H.B. 2632 which would improve transparency in Educational Improvement Tax Credit programs by closing reporting gaps to ensure that funds are directed to their intended recipients.

Rivera said EITC programs have grown into a $680 million public investment in nonpublic education in fiscal year 2025-26, more than four times the $150 million cap in place a decade ago. However, the Independent Fiscal Office has found that critical data gaps make it impossible to fully evaluate the program's effectiveness.

“While EITC funding has quadrupled over the last decade, key reporting gaps have left lawmakers and taxpayers unable to assess whether public funds have reached the students and schools they were intended to aid,” Rivera said. “That should concern everyone.

“My legislation would close these reporting gaps and ensure greater accountability so we know that these scholarships have reached the intended students.”

House Bill 2632 would:

  • Reallocate credits in 2026-27 to better align with program demand.
  • Create a new program beginning in 2027-28. The new program would:
  1. Increase oversight of scholarship granting organizations.
  2. Target resources to students living in the attendance area of a low-achieving public school or attending a nonpublic school in a low-income ZIP code.
  3. Increase transparency on how scholarship dollars are used, including requiring reporting by income level and amount of remaining tuition charged to the student.
  4. Expand funding opportunities to include childcare costs.

“These reporting gaps leave lawmakers without the information necessary to determine whether the EITC program is fulfilling its goals and reaching the students in need,” Rivera said. “By closing those gaps, H.B. 2632 would provide the transparency needed to assess whether resources have been distributed effectively and evaluate these scholarships’ impact on students, schools and taxpayers.”

The Educational Improvement Tax Credit, established by Act 4 of 2001, potentially allows businesses to significantly reduce their state tax liability (e.g., Corporate Net Income Tax, Capital Stock Franchise Tax, Bank and Trust Company Shares Tax, Title Insurance Companies Shares Tax, Insurance Premiums Tax and/or Mutual Thrift Institution Tax) by contributing/donating (cash, personal property or services) to a nonprofit educational improvement or nonprofit scholarship organization.