HARRISBURG- A group of Pennsylvania Senators are pushing Governor Josh Shapiro to opt the Commonwealth into a new federal tax credit program that the former say “could help empower parents and create new learning opportunities for students.”
The newly rolled out Federal Scholarship Tax Credit was created by Congress last year to support both public and private schools. Senate President Pro Tempore Kim Ward (R-39), Senate Majority Leader Joe Pittman, Senate Appropriations Committee Chair Scott Martin, Senate Education Committee Chair Lynda Schlegel Culver, Sen. Judy Ward, and Sen. Anthony Williams announced this week they plan to introduce legislation to codify the state’s entrance to the program.
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.
At least 30 states have already opted into the program that is estimated to generate a fresh $24 billion nationwide in education funding annually. Hundreds of millions of dollars could be sent to Pennsylvania annually if the state opts into the program.
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.
Earlier this year, Education Secretary Linda McMahon came to Harrisburg to push the state to join the program. Prior to the trip, McMahon penned an op-ed that was published by the outlet PennLive urging Pennsylvania Governor Josh Shapiro to “support education freedom.” McMahon said that, “a staggering 78% of Pennsylvania voters from varying demographics and party affiliations champion the state opting in to the Education Freedom Tax Credit. This consensus demonstrates that education freedom is not a partisan issue-it is a shared priority for families seeking opportunity.”