School choice advocates want Pennsylvania to opt into federal tax credit
Will Pennsylvania opt into a federal school choice tax credit before the end of the year?
HARRISBURG, Pa. —
School choice advocates are urging Pennsylvania Gov. Josh Shapiro to opt the state into a new federal scholarship tax credit that could help families attend private, religious, charter, and other schools outside the traditional public school system.
Federal tax credit would begin in 2027
The federal program, created under the Trump administration, allows participating states to identify eligible scholarship organizations that help eligible students attend schools that may not fall into the typical category. A number of states have already opted into participating in the tax credit, which begins in 2027.
Supporters say Pennsylvania has little to lose by participating and argue the program could expand educational options for families. It allows individuals to earn up to $1,700 in a tax credit for making an equal donation to an eligible scholarship organization, as defined under the program.
“I think it would be really, really sad if Pennsylvania didn’t opt in,” said Gila Ogle, head of the Silver Academy in Harrisburg, which receives support through Pennsylvania’s Educational Improvement Tax Credit program, a program that solicits contributions from businesses in the Commonwealth with similar goals to the federal tax credit.
Shapiro’s office said it appreciates initial guidance from the U.S. Treasury regarding the federal credit but is still reviewing the program.
Proposal draws support and opposition
The Pennsylvania State Education Association said it has not taken a position on the federal tax credit but reiterated its general opposition to using public funds for private and religious schools.
“PSEA believes that public funds should go to public schools, and we have come out strongly against many different types of voucher programs that shift funds away from public schools to private and religious schools,” a spokesperson for the teachers union said in a statement.
Republican state Senate President Pro Tempore Kim Ward (R) said Shapiro should not allow political considerations to influence the decision and argued that opting in would benefit Pennsylvania families.
“It’s put up by a Republican national administration, but this is helping everybody. It is a no-brainer to me,” Ward said.
Parents who use Pennsylvania’s existing tax-credit program also support expanding school choice options.
Marcie Smith, whose two children attend Silver Academy with assistance from the state’s EITC program, said such options are important because a child’s educational environment can have a significant impact on their future.
“It’s crucial that these options are made available because of the fact that you are a product of your environment,” Smith said.
Pennsylvania faces end-of-year deadline
Pennsylvania has until the end of the year to decide whether to participate in the federal program.
Ward said that if Pennsylvania does not opt in, residents may still be able to take advantage of the federal tax credit, but they would not be able to direct contributions through the program to Pennsylvania organizations.
“It’s going to be a missed opportunity for students for tutoring, for special services, for a chance to maybe get out of a failing school. It would be a missed opportunity for students,” she said.