Redirect Your PA Taxes to Acton
Turn the state tax you already owe into a scholarship for a child.
Pennsylvania lets businesses and taxpayers send part of their state tax to scholarships instead of Harrisburg.
What Is EITC?
EITC stands for Educational Improvement Tax Credit. It's a Pennsylvania program that lets you give to a scholarship fund and get most of that gift back as a credit on your PA taxes.
Instead of paying all of your state tax to Pennsylvania, you send part of it to scholarships. When you commit to giving the same amount two years in a row, the state lowers your PA tax bill by 90% of your gift.
The part of your gift that the credit doesn't cover, the other 10%, counts as a charitable donation, so it can be deducted on your federal taxes. Your tax advisor can tell you how this works for you.
Your $10,000 can open the door to Acton for a child whose family couldn't afford it. Most of it is tax you'd already send to the government. It may cost you about $750.
Every scholarship goes to a real family in our community. For their child, it can mean a school where they're known by name, set their own goals, and learn to do hard things.
Who Qualifies
Businesses
Any business authorized to do business in Pennsylvania that pays one of the eligible state taxes. These include Personal Income Tax for owners of S corporations, LLCs and partnerships, Corporate Net Income Tax, Bank Shares Tax and Insurance Premium Tax.
Individuals
If you pay Pennsylvania income tax, you can take part by joining the BLOCS Scholarship LLC. It takes a two-year commitment of at least $3,000 a year. BLOCS sends you a K-1 showing your 90% credit to use on your PA return.
Families who receive scholarships
Scholarships go to families whose household income is no more than $122,322 a year, plus $21,531 for each dependent. You can direct your gift to Acton, but not to a specific child.
An Honest Example
Say your business commits to giving $10,000 a year for two years. That money goes toward a child's place at Acton.
| Each year | |
|---|---|
| Your gift toward a child's scholarship | $10,000 |
| Comes back as a PA tax credit | $9,000 |
| The rest is a donation you can deduct | $1,000 |
| Federal tax the deduction may save you | About $250 |
| What the gift may really cost you | About $750 |
The part the credit doesn't cover counts as a charitable donation, so it can be deducted on your federal return. The $250 savings assumes a 25% tax rate, so yours may be higher or lower. The credit can't be more than the PA tax you owe that year. Please check with your tax advisor about your situation.
Try Your Own Numbers
Enter what you'd like to give each year for two years, and your federal tax rate.
| Comes back as a PA tax credit (90%) | $9,000 |
| The rest is a donation you can deduct | $1,000 |
| Federal tax the deduction may save you | About $250 |
| What the gift may really cost you | About $750 |
This is an estimate, not tax advice. The credit can't be more than the PA tax you owe, and businesses can receive up to $750,000 in credits a year.
Coming in 2027: A New Federal Scholarship Credit
Congress created a Federal Scholarship Tax Credit that starts with the 2027 tax year. It's for individuals, not businesses. When you give to an approved scholarship organization, you can get a federal tax credit for the full amount of your gift, dollar for dollar, up to $1,700 a person. A married couple filing jointly can get up to $3,400 when each spouse gives.
It only works in states that choose to take part. Pennsylvania has until January 1, 2027 to opt in, and it isn't on the IRS's list of participating states as of October 22, 2026. BLOCS says it's getting ready to take part if Pennsylvania does.
It's separate from EITC. The federal credit is lowered by any state tax credit you get for the same gift, and a gift that gets the federal credit can't also count as a charitable deduction.
Scholarships from this program go to students whose household income is no more than 300% of their area's median income.
If you'd like us to let you know when Pennsylvania decides, fill out the form below.
This is general information based on IRS guidance, and the rules may still change. Please talk with your tax advisor.
Common Questions
When can I apply?
Businesses renewing a two-year commitment, or in the middle of one, apply from May 15 to June 30. All other businesses, including first-time applicants, can apply starting July 1. The state approves applications in the order they come in, by day, until the credits run out, so earlier is better.
Is there a minimum gift?
The state doesn't set one for businesses. BLOCS asks individuals who join its Scholarship LLC to give at least $3,000 a year for two years.
Can I give to a specific child?
No. You can name Acton as the school, and Acton awards the scholarships to families who qualify.
What happens if my credit is more than my PA tax?
The credit can't be more than your PA tax for that year. It can't be sold, refunded or carried to another year. The one exception is that a pass-through business, like an S corporation or LLC, can choose to pass unused credit to its owners for the following year.
Can I also deduct the gift on my federal taxes?
Partly. Under IRS rules, only the part of your gift that the state credit doesn't cover can count as a charitable deduction. On a $10,000 gift with the 90% credit, that's $1,000. It only helps if you can take a charitable deduction, for example if you itemize. A C corporation may be able to treat the credited part as a business expense instead. Your tax advisor can tell you what applies to you.
How long do I have to make the gift?
Once the state approves your application, you have 60 days to make your gift, and proof of the gift is due within 90 days of the approval letter.
What about the new federal scholarship tax credit?
It's a separate federal program that starts with the 2027 tax year, and Pennsylvania hasn't opted in yet. See Coming in 2027 above for how it works. If you'd like us to let you know when Pennsylvania decides, fill out the form below.
Is this tax advice?
No. This page is general information. Please talk with your own tax advisor before you give. Pennsylvania sets the program rules, and they can change.
Curious? Let's Just Talk.
If you or your business pays Pennsylvania taxes, some of that money can go toward scholarships for families at Acton instead of to Harrisburg. Most people have never heard of this, and that's okay. Leave your name below and I'll reach out to explain how it works in plain English. Filling this out isn't signing up for anything. It just tells me you'd like to learn more.
No commitment and no pressure. I'll get in touch, walk you through it, and answer your questions. If it's a fit, great. If not, that's completely fine.
What Happens Next
We talk
A short call or coffee where I explain the program and answer your questions.
BLOCS handles the paperwork
Joe Wilson from BLOCS, our scholarship partner, walks you through the simple forms.
Your PA taxes go toward scholarships
Money you already owe the state goes to scholarships for Acton families, and you get a state tax credit for it.
Acton can't give tax advice, so please check with your own tax advisor about your situation.
Prefer to talk now? Call 724-201-3655.
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