Just one month into the state's fiscal year, businesses have snapped up nearly all the available tax credits in a $49 million state program to fund education.

Launched in 2001, the Educational Improvement Tax Credit, or EITC, program allows companies to cut their state taxes by up to 90 cents for every dollar donated to state-approved organizations to support private-school scholarships or programs at public schools.

The Legislature and Gov. Ed Rendell boosted funding for the program in the 2005-2006 budget by $5 million, to $49 million. For companies that applied too late this year, there is a waiting list to participate. Latecomers may be considered if the businesses that have already applied withdraw their commitments.

The EITC program has been hailed by supporters of school choice as a way to open the doors of private schools to lower-income students. This year, 70 percent of the funding, or $34.3 million, will go toward scholarships, including tuition for pre-kindergarten programs. The remaining $14.7 million will fund programs at public schools.

"It's exciting to see the business community embracing the EITC program and providing educational choices to parents," said Andrew LeFevre, executive director of the REACH Foundation, a grass-roots organization that advocates school choice. Nearly 25,000 students statewide received scholarships through the program last year alone, according to REACH.

In central Pennsylvania, public schools also have benefited from the tax-credit program. Last year, the Harrisburg Public School Foundation received $493,500 in funding from various area companies for its pre-kindergarten program at city schools. Nearly 500 children took part. "It's a wonderful program -- it gives these inner-city children the opportunity to learn language skills and literacy skills," said Marsha Elliott, executive director of the nonprofit foundation.

Penn National Insurance, based in Harrisburg, has been the biggest donor to the foundation, giving about $1.6 million in the past four years.

"The tax-credit program gives you an opportunity to make a very large impact for relatively small actual cost," said Geoff McDowell, vice president for administrative services at Penn National. "Harrisburg's our home, and obviously kids in the school district are potential employees for us."

Commerce Bank is another business that has taken advantage of the tax credits to help Harrisburg students. Last year, the bank established a teller-apprenticeship program with Jump Street, a nonprofit arts and community service organization, to train and give work experience to three high school students throughout the year. The students learn everything from how to dress for work to customer service from behind the counter.

The bank is contributing $64,000 over two years to fund the program.

"We feel that this particular apprenticeship program is so critical because it helps use give these young individuals an opportunity to come into a business environment and have access to professional and working skills at a very early stage in their business career," said Patricia Noel, vice president and director of training at the bank. "We think giving them a head start is very important."

APARNA KUMAR: 255-8440 or akumar@patriot-news.com