Governor announces new state tax credit for working Pennsylvanians
Good afternoon everyone. Welcome. We are, um, happy to have you here. My name is Heidi Newhouse. I am director of the volunteer Center United Way of the Capital Region, and it is my great pleasure to be here today. Before we get to the reason for this conference, I’d like to take *** moment to thank Wyner Law University for hosting us today, and I’d also like to welcome some people, um, Wyner University president Doctor Stacey Robertson. Uh, Winer University Law Commonwealth Dean Andre Cummings and former Dean Michael Hussey, Lieutenant Governor Austin Davis, Secretary of Revenue Pat Brown. Senator Patty Kim, Speaker Joanna McClinton, and Representatives Justin Fleming, Christina Sapi, and Nate Davidson. I’m shaking. I wasn’t expecting something. I’m just so excited about today. So I’m here today because I manage our United Way’s volunteer income tax assistance program or VITDA, and as the manager of this program, I have seen firsthand the huge impact that the Federal Earned Income Tax Credit has on the clients that we serve. United Way of the Capital Region and our partners at United Way of Pennsylvania have been persistent and strong advocates for working family tax relief. We know that these, these, these credits can be life changing for the community that we serve, so we are absolutely thrilled to be here today with the governor as well as Speaker McClinton, Representative Chris Sape, and others who championed the working Pennsylvania tax credit throughout the entire budget negotiations. And today for the first time I’m absolutely thrilled to be here with the governors. We talk about *** brand new state level earned income tax credit that was signed into law just last week. It will help nearly *** million Pennsylvanians putting more money into their pockets. I think that’s amazing. Our volunteers from our VIDA program had the honor of testifying before the House Finance Committee in favor of this state level credit, and now that it’s passed, we can’t wait to see the results and the impact this is going to have on the individuals and families that we serve. We are so grateful to Governor Shapiro, his administration, and all the others who made this *** priority and made sure it was included in the budget. So it was with absolute greatest pleasure that I introduce someone who doesn’t need an introduction, Governor Shapiro. Thank you. Thanks. Heidi, thank you. You were awesome. You did great. Heidi, thank you, and I, I am grateful for the work that you and your team do in partnership with the great folks here at Widner University to help, um, Pennsylvanians get money back that they deserve. And now to be able to file their taxes free of charge and take advantage of this new tax credit. I want to just take *** moment. I, I know the president and the dean were acknowledged from Winer. I wanted to ask students if you could raise your hand who are here. Um, it is awesome to be with you. Thank you. I, I really think this is *** phenomenal law school, not just because of what you learn in the classroom, but the way in which your president, your dean, the other leaders here encourage you to think outside the classroom. And I think this clinic, this, uh, where you do this tax prep is *** great example of that thinking about the world around you utilizing the unique skills that you are developing as young lawyers to go out and help the community around you. I, I think that that is the calling. I say this as *** lawyer, um, that is our calling to go out and use the law to help others and so I admire what all the students here, um, are doing. And so keep it up and let us know, uh, let us know how we can help in your mission to serve others around our communities. I wanted to come today and talk about the work we did in the budget to address rising costs across this commonwealth and across this country. Uh, I know that Pennsylvanians are worried about rising costs. I hear it when I’m out and about and I hear it from folks as I travel all across this Commonwealth rural urban. And suburban communities I hear it when I’m at the grocery store just as I was *** couple days ago with my kids and, and look, let’s be real, we, we recognize that federal policies are the primary driver of those rising costs we’re seeing at the grocery store and in our communities um and that is specifically as *** result of the tariffs coming from the administration in Washington. I mean, heck, the administration admitted, I think it was on Friday that um these tariffs were hurting people when they go to the grocery store when they rolled back some of the tariffs on groceries like beef and bananas that just got too darn expensive as *** result of their policies but you see here in Pennsylvania we don’t dwell on just what’s happening in DC. See, we focus on what we can do at the state level to address those rising costs and that’s exactly what we’ve done over my 1st 3 years as your governor and that’s exactly what these lawmakers and members of my administration do every day. We work hard to bring down costs and make life more affordable for our fellow Pennsylvanians. Consider this in just my 1st 3 years as your governor, we have reduced costs and cut taxes 7 different times for Pennsylvania seniors and families and business owners. Together we delivered the largest targeted tax cut for seniors in nearly 2 decades when we expanded. The property tax rent rebate program we actually increased the maximum rebate from around $650 up to around $1000 and we increased the income limit to $46,520 and placed *** cola on that so that number grows over time and doesn’t knock people out of getting that property tax rent rebate and as *** result of our work, this isn’t just theoretical, this is very tangible 522. 1000 Pennsylvania seniors got $319 million more back in their pockets as *** result of this work we did on *** bipartisan basis in the Pennsylvania legislature. In addition, the work we’ve done for seniors, we also help parents and families by tripling the child and independent care tax credit, which puts money back in the pockets of parents trying to pay for child care. Last year because of that work we did together introducing. That tax break, 218,953 families to be exact, got $136.5 million back in their pockets to help offset the cost of childcare. So whether it’s our seniors or those who are trying to afford childcare, we’re putting money back in people’s pockets and to add to lowering the cost of child care. For families we also created *** new employer child care contribution tax credit to encourage businesses throughout Pennsylvania to be able to contribute to the childcare costs for their employees that really has made quite *** difference for the students who are here you should know that as *** result of our work we are now allowing you to deduct your student loan payment. On your state taxes, another example of trying to put money back in people’s pockets. And in addition to that, we have cut the corporate net income tax each year I’ve been in office saving Pennsylvania businesses $1.5 billion in added costs. In addition to that, for small businesses and those who are just getting. Going in the process we’ve de-risked that work for you and put money back in your pocket by increasing the net operating loss deduction on your state taxes. We have cut taxes and we have reduced costs all across this commonwealth, and that continues in the new budget that I just signed into law with these members by my side just last week you know our top priority this year was delivering *** budget. That would once again cut taxes and invest in what matters most to our fellow Pennsylvanians because we held the line because we stayed at the table and because we demanded *** serious budget that addresses the needs of our fellow Pennsylvanians well the budget that I just signed into law builds on the progress we made and introduces *** new tax cut to help offset rising costs for Pennsylvanians who are working. This new budget I signed into law just last week creates the working Pennsylvanians tax credit that will put about $193 million back in the pockets of Pennsylvanians who are working but are struggling to get by, you know, this is something that folks in the Capitol have been talking about for years and years and years. Something that Speaker McClinton and her caucus have been driving forward on to try and see if they could get some momentum, see if they could get some bipartisan support for it. Well, working together, we got it done and the good people of Pennsylvania are the beneficiaries this tax credit is *** percentage of the existing earned income tax credit at the federal level that Heidi. Referenced in her remarks. So now every single Pennsylvanian who qualifies for the federal credit will automatically receive the state tax credit. So for those of you Waner students in the clinic, this is probably one of the more easy tasks you’re gonna have to deal with as you’re helping people fill out their taxes because all you have to do to qualify for this relief is to file your. Taxes and if you get the federal break you’re now going to get the state tax break. Let me put this into some real perspective on what it means for Pennsylvanians who are working and who are now gonna get some additional relief. That single mom who’s raising three kids who’s making about $25,000 *** year as *** waitress, she can get $770 back on her state taxes. On top of whatever relief she was gonna get from the federal government, the grandmom who had to go back to work working minimum wage at *** grocery store, she’s raising *** grandchild and she’s gonna get, uh, and she made about $15,000 last year just through her minimum wage earnings. By the way, we’re working hard to raise the minimum wage in Pennsylvania to $15 an hour, something that needs to get done. That grandmom’s gonna get about $443 back on her state taxes or consider the family with *** dad who makes about $40,000 *** year while mom stays home with their two kids. They’re gonna get $514 back on their state taxes and understand that this isn’t some giveaway. These are people who are working, they’re struggling to make ends meet. And with the stuff coming from the federal government making ends meet is even harder right now. So here at our state level we’ve come together on *** bipartisan basis to say if you’re working, if you’re doing everything right by the book, we’re gonna put money back in your pockets with this working. Pennsylvanians tax credit. I think it is really, really important that we look out for our fellow Pennsylvanians and as *** result of this work, 940,000 Pennsylvanians will qualify for this tax cut. This is *** big deal. 13 million Pennsylvanians, so nearly 1 out of every 13 will qualify here in Dolphin County alone, that’s about 25,000 people just in Dolphin County. Who will qualify for this tax credit it’s *** really, really big deal and I’m proud of all these lawmakers and everyone who advocated to get this done. Look, I’ll close with this uh *** budget to me is not just *** bunch of numbers in *** spreadsheet. It’s *** statement of your principles. It’s *** statement of your priorities. It’s *** statement about how we invest in the needs of Pennsylvanians today and well into the future. It’s about incorporating the needs of people from all different walks of life from rural urban, suburban communities from communities that vote Republican and communities that vote Democrat, but finding the common ground necessary to help lift up the most Pennsylvanians we possibly can. It’s about finding ways in this divided government that I am privileged to lead of working together to get stuff done. It’s about reducing costs for our fellow Pennsylvanians. It’s about making critical investments in their future and as *** result of our collective work, the good people of Pennsylvania are better off, and we proved again that we can get stuff done here in the Commonwealth of Pennsylvania. Now listen, this is *** team effort and *** team game and so I’m blessed to have *** whole lot of teammates out there who do this work with me. The teammate that I work closest with every day um is my partner, the lieutenant governor of the Commonwealth of Pennsylvania who definitely understands how to get stuff done. He’s here with us today, ladies and gentlemen, it’s my pleasure to introduce Lieutenant Governor of the Commonwealth of Pennsylvania, Austin Davis. Thank you. Well, first, thank you so much Governor Shapiro I’m grateful to be with you this morning, uh, and I’m really excited to be back here at Winer University. Uh, one of the very first events, uh, I did when I became Pennsylvania’s lieutenant governor was right here, uh, with Representative Justin Fleming. Uh, at that event I was talking about something that I had once supported, uh, during my time as *** state legislator that was just coming to fruition. Uh, and here today we’re talking about, uh, yet another policy that I was proud to support as *** legislator and the governor mentioned in his remarks that, uh, sometimes we’ve been working on, on this particular issue for years at the state capitol. Uh, we say that to emphasize that sometimes good policy really does take time. uh, progress can be slow and. Sometimes unfortunately it can be painfully slow um but when leaders come to the table and work together in good faith, uh, to make *** positive change for the people of Pennsylvania, uh, we can get good things done uh that’s what Governor Shapiro and I have been focused on every single day, uh, that we’ve been in office. Uh, we’re working hard to make life just *** little bit easier for folks who are working hard. To make their American dream come true, uh, right here in Pennsylvania starting next year when nearly 1 million people file their taxes, those folks who qualify for the federal earned income tax will get up to $800 back on their state taxes as well. Maybe that doesn’t seem like much uh to some folks, but *** lot of working families, that means their kids can play soccer in the summertime. It means that that family might be able to take that summer vacation uh or they might be able to pay off some debt and to create *** little breathing breathing room. Uh, that’s *** good thing for Pennsylvania families, and it’s *** good thing for our economy because many folks will be spending those dollars in our communities. When families have to cut back because of higher prices and costs, it hurts businesses big and small. Uh, even as the lieutenant governor, I’ve seen how expensive it can be, uh, for working parents out there. Uh, my daughter Harper is 2 and she’s in daycare literally, uh, as we speak. Uh, my wife and I, uh, really had to look hard to find, uh, an opening at *** high quality facility for our daughter, uh, but believe me, we’re paying for it, uh. We’re certainly not unique and we’re more fortunate than most, but we’re very familiar with the cost of raising *** family in this day and age uh that’s why I’m so passionate about expanding access to affordable high quality child care and helping working families not just get by here in Pennsylvania but to make sure that they can get ahead. I appreciate the work of the United Way volunteers uh who help their fellow Pennsylvanians get their taxes done. Uh, as *** state legislator, I welcomed the United Way into my district office to help my constituents prepare their taxes, and I know many of the legislators here do similar programs as well. Next year those folks will be getting even more money back in their pockets, and that’s *** win for working families and it’s *** win for Pennsylvania’s economy. Uh, over our course of time in office we’ve cut taxes 7 times since Governor Shapiro and I have come to office, uh, and you know we have no greater leader in our administration on these efforts than Secretary Pat Brown. uh, Secretary. Brown is literally the point person, uh, on making sure that we get money back into the pockets of working class Pennsylvanians and get our economy moving. Uh, it’s my pleasure to introduce my friend, uh, our revenue secretary, Mr. Pat Brown. Good afternoon. On behalf of uh approximately 1700 members of the team of the Pennsylvania Department of Revenue. I’m proud to be here today to talk about what it really is *** landmark improvement to our Pennsylvania income tax system, and that really is not *** stretch as it is commonly known, unlike the federal government because of constitutional provisions and court precedence, Pennsylvania maintains what is *** uniform tax system, which means. That we can’t provide tax benefits based on individual circumstances, marital status, um, or age that’s why we have one of the reasons we have *** flat rate and not *** progressive like the federal government has. There’s one exception to that though, and that is that we can provide accommodation based on poverty, and state government has through one provision for the last 54 years, the special poverty provision, but that is it. For the last 54 years, state government has not advanced *** new initiative in its tax system to address poverty and assist all working families until this year. For the first time in over half *** century under the leadership of Governor Shapiro and the majority of the General Assembly, Pennsylvania state government will offer all its working families *** powerful new initiative in its tax system to improve the quality of life of nearly *** million Pennsylvanians. And if state government decide to advance such an initiative, it would be most appropriate to piggyback on probably the most long standing, resilient, accessible, and for Pennsylvania compatible system available, the federal Earned Income Tax Credit. For 5050 years, the federal government and 28 states, no system has been more effective in raising working families above the poverty line than the Earned Income Tax Credit has. It is resilient and accessible because its benefits are not dependent on government agencies. It’s not government agency driven, it’s citizen taxpayer driven. It does not require connection to an agency program which might be affected by many challenges. *** working family gains access on their own through their income tax compliance for Pennsylvania it is most compatible because it does not replace the existing poverty system. But through refundability it builds upon it, providing assistance beyond *** family’s tax liability as the governor mentioned for *** family of four with an income around $34,000 not only receive *** refund of all their taxes that were withheld around $1000. But also receive additional $715 to assist with family needs. Given the late date in the calendar year, questions have been reasonably raised as to whether the Department of Revenue can provide this benefit as part of the 2026 tax season again because of Governor Shapiro’s leadership and the General Assembly support of our new state of the art compliance system which has improved federal integration, uh, electronic filing and direct deposit features, the simple answer. Like our timely implementation of the dependent care tax credit system is yes. The hard work of all our members of our team, making sure that $192 million of assistance gets in the hands of almost *** million Pennsylvanians. We’re proud to be part of Governor Shapiro’s effective and expanding resume of tax fairness for Pennsylvania citizens, historic expansion of the tax rebate rent rebate program, the dependent care credit, and now for the first time in over half *** century working family assistance in our tax system. And look forward to effective implementation as the as the years come. Thank you very much. OK We call Karen Shult Walter, um, working mothers executive director. Thank you. OK. Good afternoon. My name is Karen Showalter, and I’m the Pennsylvania director for Moms Rising and Amas Cooder. We represent over *** million members nationwide, including over 50,000 here in the Commonwealth, and I’m honored to be here today to celebrate the working Pennsylvanians tax credit and to share how much it will mean for Pennsylvania families like mine. I’m *** mom of two kids here in Cumberland County. Moms are enormously grateful for Governor Shapiro’s leadership fighting for *** state budget that supports working families, and we know this new credit will boost families, kids, communities, and our economy. We also thank every legislator who has championed and supported this as well. We know that we know that this will make *** difference because we hear it from members every day in every corner of the state who need the relief this tax credit provides. So many of our members tell us that even though they’re working hard and caring for their families, they still can’t get ahead financially. More are juggling paid work while also caring for young kids or aging parents or often both and struggling to make all the pieces fit together that keep their families afloat. Programs like this make *** big difference for our members. One of them in Pittsburgh shared as *** single mom, I can tell you plainly an extra $700 isn’t just *** number on paper. That’s groceries that stretch *** little further, gas in the tank without holding. I, I need the glasses if you don’t mind, we’re not going to pretend anymore. Um, gets in the tank without holding my breath at the pump and the kind of breathing room that helps keeps the light helps keep the lights on and stress down. These times have been heavy and every bit of support helps us keep our families steady and moving forward. Other members have shared that tax credits like this will enable them to again uh afford gas for their vehicles to buy food, to be able to wear clothes and shoes without holes, to keep the power and heat on in their house, uh, to keep the car running to get to doctor’s appointments, physical therapy, the grocery store, and the laundromat, to buy socks and shoes and to purchase much needed furniture, and much more. We have hundreds of stories from parents like this. Our state’s working families are up against *** lot. It’s no secret that families’ budgets are under incredible strain with the cost of essentials like food, heat, housing and healthcare skyrocketing. That’s on top of the care crisis families are facing because child care and elder care are not affordable or available and for most Pennsylvanians paid family and medical leave is still not accessible so in the midst of these serious challenges, the working families tax credit is *** tangible win that will provide real relief to moms and families across our state. So again on behalf of parents and caregivers in Pennsylvania I want once again express our deep gratitude to Governor Shapiro and to all of the leaders who have made this happen and made this meaningful win *** reality for families statewide. We look forward to working with the governor to continue to advance policies that support working families, help and help us build good lives while also boosting our economy. Thank you so much. Thank you. And now it is my honor to introduce Speaker Joanna McClinton. Thank you Great work. Good afternoon, everyone. Good afternoon, everyone. Now it’s been since 2006 that I was in law school, but now come on, you all know how to talk back. I’ll get *** face sheet and I’ll start calling names, but I don’t wanna have to do that here today. I am just so very grateful. In an hour where there are politicians who are supposed to be serving the public, but they spend every moment of time kissing up to the 1%, the richest among us. Billionaires finding ways to put more money in the pockets of billionaires, the richest people, and you know, governor, most people, and I’m gonna put myself in that category, don’t personally know millionaires so the. The idea of billionaires getting more money in their pockets is unfathomable. We can’t even conceive it, but I am grateful that here in Harrisburg, we have *** hero among us for working families, and his name is Governor Josh Shapiro. I have to tell you all, the 4 months and however many days of having no budget was hard. That’s my confession for the week. It was difficult and we know in this climate many people have lots of things going on in state capitals, United States capitals, and often come away without any wins whatsoever but no matter how long it took, we had Governor Shapiro, Lieutenant Governor Austin Davis staying at the table making sure that not only did we get *** budget done but that we came up with wins. I know I’m not. Not by myself when I am at the gas pump or in the supermarket checking the prices and making up the additions as I go along to see if I can stay on my own budget and I don’t have many mouths to feed, but I did the math, Governor, and it’s been since 2000 that I turned 18, but my mother, *** single mom, would have been able to qualify for this working Pennsylvania tax credits. She would have been able to get. Some extra money in her bank account for the times of crisis because many are just like all of us. Two weeks ago I came home to Harrisburg to find water and other things I won’t mention all through my basement. You don’t know what types of emergencies will occur when you’re raising children and caring for your families, but understand, people will judge you and say, well, why don’t you have savings? Why don’t you have *** little extra? Well, the truth of the. The matter is when you’re working paycheck to paycheck, there isn’t any extra. There isn’t any savings, but I know that Ebenezer Temple Pentecostal Church at 5-eventth and Christian that does the taxes every season, thousands of West Philadelphians go there. Thank you, United Way. They’re gonna make sure every one of my neighbors back home who is eligible gets this money back and Their pockets and I’m so grateful and so excited to see that not only we have this win but that we become the thirty-second state to do it. Thank you to my colleagues, Representative Christina Sapi, Representative Fleming, Representative Davidson, and now to my senator when I am at my home away from home, the gentle lady from Dolphin County, Senator Patty Kim, thank you. I Thank you Madam Speaker. Thank you for your leadership. Thank you for bringing this up here today. Good afternoon everyone. I am so honored to have voted for this tax credit. That is so essential. As many of you know, uh, we just had *** snap snafu and saw *** lot of working families suffering. But in the midst of the darkness and scariness during that time, we wanna thank Governor Shapiro for fighting back on that, but we saw *** lot of people in the community link arms and work together from churches to synagogues to food banks. I was actually at the Central PA food bank, uh, with Laurie Shapiro, our first lady, uh, packing boxes, and by the way, I think I like her more than you now. She’s very smart and very kind. You and Fleming, yeah. So very encouraged to see the community. I have one quick story. There is *** sub shop in Hershey called Stuffed Steaks and Hoagies, and they were giving out free meals to anyone who needed it, especially those who got cut from Snap. He has given over 1100 meals to the community, and his motto is Everybody eats, everyone eats. So the community has done their part. It’s our turn. As the state government to do our part and give *** little bit back to the people who are working 40 hours *** week to feed their families, and I just before I go because everyone said what I wanted to say is that if we have raised the minimum wage to $15 an hour, we would have helped bring up almost *** million people. This program brings up almost 100, uh, excuse me, 1 million people. One program costs the state nothing, the other costs the state $193 million. We can help folks two different ways. Next year, let’s do both. Let’s do it. As glory. The governor said, ask Laurie Shapiro to do it. She’ll get it done. I am so honored to bring up, uh, *** woman who has been fighting this has authored *** bill for this important tax credit from Chester County. I’d like to introduce Representative Christina Sapi. I don’t stand next to the governor at press conferences very often. I think this might actually be the first time, so when you see my hand shake, just be patient. You got it. Thank you, Senator Kim, my former colleague. Um, I’m so incredibly happy and so proud to be here today to celebrate the passage of this Pennsylvan working Pennsylvania’s tax credit. Um, since we have so many students in here, I thought I’d talk just for *** short minute here about the journey to getting something like this passed because as you’ve heard from my colleagues and uh others and the governor, um, it, it takes *** lot, it takes an awful lot, and it takes many years sometimes to get something really substantive passed. Um, there have been many Sherpas along the way, as, as we say in my house, in the nonprofit sector, from the academic sector, the business and financial sector on both sides of the aisle in the General Assembly, I’m grateful for all of them. Their time and effort to help me understand as *** prime sponsor the importance of *** state EITC who it would serve and how it would work has been invaluable in getting this legislation across the finish line and to illustrate how far we’ve come with this effort in 2023, the bill I introduced to create an earned income tax credit for the state passed the House 122 to 81, so we clearly didn’t have everybody on board back then. This year, this legislation passed in the House 185 to 18. So there’s some recognition that things are tough out there. You, you all know the process, so I’m not gonna go into the details here, and I think *** lot of folks before me have talked about the the technical aspects of this bill and who it’s going to help, but it’s important to note that throughout the summer and fall, even as the budget impasse continued, the working Pennsylvania’s tax credits stayed on the table, and I’m so grateful for that, Governor, um, these are challenging times, as you’ve heard for so many Pennsylvanians, and there was recognition throughout the capital that we needed to act. So when you know we get our heads down we put our heads down as legislators um we’re working on *** budget deal we’re creating good strong public policy um but for those who joined us on this journey who pushed so hard to get the working Pennsylvania’s tax credit passed, uh, we see real faces. We know these folks and we’re related to some of them I see children I see my my kids so this was really personal. Their struggle to keep going and not fall behind is very real. These folks need us and we need them. We need them to stay at work. We need them to stay in Pennsylvania and we need them to keep contributing to our economy and to our society. So again I’m grateful that we were able to come together to establish this critical program and for the governor’s support, secretary and my colleagues here in the House and the Senate, and I’d like to give *** sappy shout out if you wouldn’t mind to *** couple of folks that have *** special place in my heart, um, for their commitment to this issue. It’s an interesting cast of characters, um, especially in light of the times we’re living in, but nevertheless, you’re all special for joining this ride. Huge thanks to Governor Shapiro and Speaker McClinton. Majority Leader, uh, Matt Bradford and Speaker, again, um, lieutenant governor. Senator Linda Culver, Senator Judy Schwank. Steve Samuelson, Martina White, Representative Mike Jones, Chief of Staff, Anne Malone, who always responds to my texts. Thank you so much, Anne, if you’re watching. House Finance Committee executive Director Mark Foreman, who really crunched *** lot of numbers for me and for all of us, *** legislative liaison who helped me also so much, Phil F Favo and former state rep Sarah Enamerao, Vanderbilt University prenatal to 3 policy impact Center really helped us understand the impact to infants and toddlers that this legislation has when we have an earned income tax credit. We are helping some really small people and folks back home in Chester County, the Chester. County Chamber of Commerce, Kennett Area Community Services, Southern Chester County United Way, Southern Chester County Regional Chamber of Commerce, and last but not least, my amazing staff, past and present, you’ve had my back every day and night, and I love you so much for it. And um if I haven’t mentioned Kristen Rotts from the United Way of Pennsylvania has been *** rock throughout this entire process, so I’m so grateful and thank you again for everyone’s support and I’d like to introduce my good friend and former seatmate on the House floor, Justin Fleming. Good job. Thank you, Governor. Good afternoon. Uh, everyone legitimately took what I had to say. I’m the last person to go, but, uh, uh, no, I, I am absolutely honored to be here. Welcome to the 105th Legislative District here in beautiful Susquehanna Township. Uh, thank you all for coming on what is *** truly momentous day and an incredible, uh, day for working families all across the Commonwealth of Pennsylvania. Uh, similarly to Speaker McClinton, uh, I grew up in circumstances that were less than ideal. I can. Economically, when I was living in public housing when I was getting *** free and reduced lunch at school when we had food stamps, um, I have no doubt my father, uh, who was working as *** trucker and raising 4 kids, uh, with her with my stepmother, uh, I have no doubt that he would have qualified for this as well so, uh, that’s the experience we bring to this general assembly and that’s why it’s so important to us and I just, I have one message beyond the policy. I thank the United Way for the work they do and uh I was I was uh lucky enough to be *** part of that work when I was at Pennsylvania Partnerships for Children, uh, advocating for children all across this Commonwealth and *** lot of people who we talk about who are in poverty are children let’s not forget that children who were just. Riding along in their circumstance, they have no control over their circumstance, no ability to work, no ability to earn income. And so let’s please keep children in mind and, and the one message I want to leave is, please, policymakers, stop punching down on working families. It ends now people every day are struggling trying to make it yet we hear these stories of folks who supposedly are not doing anything at home playing video games and get all these government benefits. I have never in my life encountered somebody like that. These folks are trying to get by. They are working their tails off each and every day and so I’m thankful to be able to do this work thankful for the governor, the lieutenant governor, and, and the general assembly our, our collective action on this because it’s really important. Putting this money back into people’s pockets is really important. Others talked about the, the emergencies, you know, working in PA partnerships for children we worked with the United Way asset limited income constrained. Employed Working we used to call it the working poor that’s *** better name honestly the Alice families um employed that’s the key part people are working, they’re trying to get ahead and this the difference getting this tax credit could be, you know, you get, uh, you get an engine that blows out, you get, uh, an appliance that breaks down and then suddenly you can’t pay your light bill or and and that’s, that was my reality one little thing goes wrong my dad can’t get to work he doesn’t get paid that week. And so it’s really important to keep working families at the center of our work and uh thankfully with this bill we absolutely did that today. So I am uh humbled and honored to be *** part of this work and uh I will toss it back to Governor Shapiro for the Q&A unless you want me to go ahead. No, no, no, no, absolutely not above my pay grades you. Thanks. I just wanna close. I don’t know if I’m allowed to use your term, *** sappy shout out, but I wanna give, uh, I wanna give *** sappy shout out to our delegation here in the Dolphin County area. You just heard from. You know your representative and your senator who represent this community I’d also add represent Davidson who’s in *** nearby district these folks fight really hard for South Central Pennsylvania every day and they deliver and so I wanna thank them very much. I also hope it’s not lost on anyone that of all the speakers you heard from here today, they’re all from different regions of our Commonwealth and yet they’re all here singing. From the same hymnal talking about how this is going to change lives in their communities from the city of Philadelphia where the speaker hails from Western Pennsylvania where the LGs from Chester County, Dolphin County as we talked about before, the Lehigh Valley where the secretary is from all across this Commonwealth, people are gonna benefit from this 940,000 of our fellow Pennsylvanians. This is *** big deal. And Pennsylvania’s leading the way and I, I thought it was really important what the secretary said. It’s been 54 years since we made this type of change to lift up working families in Pennsylvania. That’s *** big deal. 5 decades, uh, took too long, but we got it done working together in *** bipartisan manner. So I wanna thank all of you and with that we’ll take *** few questions. Uh, governor, we heard the comments from Stacy Garagy, uh, *** few days ago talking about the budget, criticizing the budget, saying that, uh, wondering why lawmakers would pat themselves on the back, in her words for passing the budget. I think she called it crazy as well. What would be your response to that? Uh, I would direct the treasurer to read the comments of President Pro Tem Ward and Leader Pittman. Leader Pittman called it an historic budget, so I, I’d encourage her to read their comments. Tom, you there, uh, Governor, I know, um. Speaking of budget related stuff, skill games did not get done. There is *** case that’s gonna be heard this week that will weigh in on the future of them. Are you concerned at all that you know the money that helps the state afford things like this, you know, there’s ***, there’s *** fiscal issue next year I think you’re aware of it, but when you talk about skill games does that need to be part of the discussion going forward? you wanna see them. Pardon me. You want to see them legalized regulated. Yeah, I’ve been calling for the legalization regulation, taxation of skill games now in each of my budgets. It’s something I feel strongly about. I think that there are majorities in both the House and Senate to get it done. Uh, I would say that the leaders all understand one another better on that issue even though it didn’t end up in the final product here and just because it didn’t end up in the final product here doesn’t mean it’s not gonna get done each budget you’ve asked me at the end of each budget about things that didn’t make it into that one. I call it unfinished business and we come back the next year and we. Working at it. That’s how you make progress and so we’re gonna continue to work at that issue, and I feel confident we’ll be able to get that done. Dennis and and pardon me Dennis, just one last thing. I, I realize you asked it in your question in in *** respectful way about the fiscal situation in this Commonwealth. Let’s not lose sight of the fact that this is *** balanced budget. It cut taxes. It made critical investments. It didn’t touch the rainy day fund, and it leaves us with $8 billion in reserves. You go look at some neighboring states. Who are really facing significant deficits we’re in *** strong fiscal position, and I remind you we are the only state in the northeastern part of the United States with *** growing economy. And so I expect, particularly if the federal government gets its act together and stops hurting the states, we’re gonna keep growing. We’re in *** strong position and we’ll be able to come back next year and continue this work of put money back in people’s pockets and making critical investments. Thanks Tom. Sorry, Dennis *** couple of clarifications on this so when I fill up, people are filling out their taxes. Two months this kick into place for this current year that we’re in next year. When you fill out your taxes next in the in the winter in 2 months, this will be *** tax credit that you can get. Yes, and you and you heard from the secretary they’re working overtime to make sure they drive these dollars out quickly and basically the $193 million is that taxes that would otherwise be collected that’s not going to be collected. That is money that would be collected that’s not going to end up back in people’s pockets. And then, and then, um. Yeah, that that’s good. Thank you. Thank you. I got *** good from Dennis. That’s pretty, that’s historic, Zach. Governor, this is pegged to 10% of the federal income tax credit. Do you see that number being negotiated up in future budgets? I know there’s some states that will give you like. Well, Zach, we just got this done *** few days ago, so we’re gonna make sure we drive these dollars out. We, we’re gonna make sure we drive these dollars out and we’re gonna make sure that they have *** positive impact on the individuals who are helped and as you heard before on our economy as well. OK, well, the last thing is that automatically linked to the feds, or are we gonna have our own automatically linked if you qualify for the federal, they call it the earned income tax credit. You are automatically qualified for the working Pennsylvanians tax credit, and you will receive that money on your next taxes. OK, thanks everybody.
Governor announces new state tax credit for working Pennsylvanians
Updated: 2:44 PM EST Nov 17, 2025
Pennsylvania Gov. Josh Shapiro held a news conference Monday afternoon to highlight the creation of the Working Pennsylvanians Tax Credit. The credit offers $193 million in tax relief for nearly one million working Pennsylvanians, according to the governor’s office.Above: Watch the full news conference.The 2025-26 budget signed by Shapiro established the new credit equal to 10 percent of the federal Earned Income Tax Credit (EITC), ensuring that anyone who qualifies for the federal EITC will now automatically receive both credits when they file their taxes next year. At the news conference, Shapiro was joined by:Lt. Gov. Austin DavisDepartment of Revenue Secretary Pat BrowneKaren Showalter, Senior Director, MomsRisingHouse Speaker Joanna McClintonPennsylvania State Sen. Patty KimRep. Christina SappeyRep. Justin FlemingHeidi Neuhaus, Director of the Volunteer Center, United Way of the Capital Region
HARRISBURG, Pa. —
Pennsylvania Gov. Josh Shapiro held a news conference Monday afternoon to highlight the creation of the Working Pennsylvanians Tax Credit. The credit offers $193 million in tax relief for nearly one million working Pennsylvanians, according to the governor’s office.
Above: Watch the full news conference.
The 2025-26 budget signed by Shapiro established the new credit equal to 10 percent of the federal Earned Income Tax Credit (EITC), ensuring that anyone who qualifies for the federal EITC will now automatically receive both credits when they file their taxes next year.
At the news conference, Shapiro was joined by:
Lt. Gov. Austin DavisDepartment of Revenue Secretary Pat BrowneKaren Showalter, Senior Director, MomsRisingHouse Speaker Joanna McClintonPennsylvania State Sen. Patty KimRep. Christina SappeyRep. Justin FlemingHeidi Neuhaus, Director of the Volunteer Center, United Way of the Capital Region