HARRISBURG – A bipartisan group of PA state senators is working to ensure the Keystone State benefits from a new federal tax credit program which would create new learning opportunities for students. The group plans to introduce legislation that would ensure PA families can benefit from the Federal Scholarship Tax Credit, which was created by Congress last year to support both public and private schools. The program allows 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 public or private 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 state lawmakers 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. The IRS says 30 states have already opted into the program, but not PA. Failing to opt in would mean PA students could miss out on hundreds of millions of dollars in education funding annually. 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.
