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The Education Tax Credit (ETC)

how much is the education credit

The Governor’s Parental Choice in Education Act will support and protect alternative school options for parents and students across New York State and will increase investment in education by encouraging more charitable donations – donations that benefit all students regardless of what type of school they attend.

The Parental Choice in Education Act includes the Education Tax Credit which allows for $150 million in education tax credits annually:

    Tax credits to low-income families who send their children to nonpublic schools Scholarships to low- and middle-income students to attend either a public school outside of their district or a nonpublic school Incentives to public schools for enhanced educational programming (like after school programs); and Tax credits to public school teachers for the purchase of supplies.

How the Tax Credits Work

Family Choice Education Credit – $70 million in credits

This tax credit will provide credits to families of religious and private school students. Families with incomes below $60,000 per year would qualify for up to $500 per student for tuition expenses, which will benefit approximately 140,000 children and approximately 82,000 families across the state.

Education Scholarship and Program Tax Credit – $70 million in credits

This portion of the Parental Choice in Education Act will benefit children especially from low-income and working-class families by expanding private K-12 scholarship opportunities and increasing resources for public school programming.

Scholarships for Low-Income Students – $50 million in credits

The proposed Education Scholarship and Program Tax Credit is the most effective and realistic approach to provide equal educational access to greater numbers of children from low-income and working-class families. This tax credit will expand access to religious and

private schools that many families rely on as alternatives by funding $67 million in scholarships for low-income students. By expanding the availability of K-12 scholarships, more children will have more quality educational options than are available currently.

Individuals and businesses can receive a tax credit for up to 75 percent of their donations made to not-for-profit organizations that award scholarships to private and out-of-district public schools based on financial need of the students’ families.

Funding for Public School Programs – $20 million in credits

Non-profit organizations that serve children in public schools, for example, by operating pre-Kindergarten or after-school programs, or providing arts, music, tutoring or other educational activities, require revenue sources in various forms. Under this portion of the Education Scholarship and Program Tax Credit, public school students and educators will benefit from $27 million in new funds for education improvement programs. It will substantially increase the ability of these organizations to raise charitable funds and expand their educational reach in the communities they serve.

Individuals and businesses will be able to receive a total of $20 million in tax credits for up to 75 percent of their donations made to public schools and not-for-profits that support public schools’ educational programs, including Pre-K and extended-day programs.

Instructional Materials and Supplies Credit – $10 million in credits

This tax credit will reimburse teachers who pay out of their own pockets to buy supplies for their classrooms. Public school teachers will be eligible for $200 to support the purchase of instructional materials and supplies for use in classrooms. This credit will benefit educators and students throughout the state, and will be administered on a first come, first served basis.

Category: Credit

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