HARRISBURG – A bipartisan group of state senators is working to ensure Pennsylvania benefits from a new federal tax credit program which could help empower parents and create new learning opportunities for students.
Senate President Pro Tempore Kim Ward (R-39), Senate Majority Leader Joe Pittman (R-41), Senate Appropriations Committee Chair Scott Martin (R-13), Senate Education Committee Chair Lynda Schlegel Culver (R-27), Sen. Judy Ward (R-30) and Sen. Anthony Williams (D-8) announced today they plan to introduce legislation that would ensure Pennsylvania families can benefit from the Federal Scholarship Tax Credit, which was created by the U.S. Congress last year to support both public and private schools.
The program would allow taxpayers to earn up to $1,700 in tax credits for contributions to non-profit Scholarship Granting Organizations. These organizations could use the funds to provide scholarships for education-related services at private or public schools, including tuition, fees, academic tutoring, special education services, technology services and classroom supplies.
For students and families to be eligible for scholarships, a state must opt in with either an order signed by its governor or a law passed by the state legislature by Jan. 1, 2027. If a state does not opt in, taxpayers in that state will still be eligible for the tax credit, but the money will fund scholarships in other states.
According to the Internal Revenue Service, 30 states across the U.S. have already opted into the program.
A recent report estimates the tax credit will generate an additional $24 billion nationwide in education funding annually. Failing to opt in would mean Pennsylvania students could miss out on hundreds of millions of dollars in education funding annually, the senators said.
Initial guidance on the program was released by the federal government in June, and the IRS expects that full regulations will be issued in September.
CONTACT: Erica Clayton Wright (Sen. K. Ward)
CONTACT: Kate Flessner (Sen. Pittman)
CONTACT: Jason Thompson (Sen. Martin)
CONTACT: Sam Clepper (Sen. Culver)
CONTACT: Matt Deegan (Sen. J. Ward)
CONTACT: Sabrina Hall (Sen. Williams)