HARRISBURG – Senator Lynda Schlegel Culver (R-27) and Senator Judy Schwank (D-11) today announced the inclusion of the Working Pennsylvanians Tax Credit in the 2025–26 state budget, a bipartisan initiative the two legislators co-led in the Senate to provide meaningful relief for working families across Pennsylvania.
The measure, modeled after the federal Earned Income Tax Credit, delivers refundable tax relief to an estimated 700,000 households, helping families afford essentials such as child care, food, transportation, and housing.
Culver, who has championed the policy since her time serving in the House of Representatives, said the new credit reflects a responsible and practical approach to supporting working families.
“I am proud to see the Working Pennsylvanians Tax Credit included in this year’s budget after years of advocacy,” Culver said. “This credit rewards work, strengthens household stability, and helps those doing everything right, working, paying their bills, and supporting their families. This is a commonsense investment in both our workforce and the future of our Commonwealth.”
Schwank said this tax credit is a critical step toward giving working families the support they deserve.
“This is a win for working families,” Schwank said. “We see how effective EITCs are in other states, and I know thousands of families across Pennsylvania will feel the difference. This tax credit puts money back in the pockets of the people who need it most. Whether it’s groceries, child care, after-school programs or rent, this support gives working Pennsylvanians the flexibility and breathing room they need to thrive.”
While a companion bill advanced in the House earlier this year, both senators had prepared matching legislation in the Senate and worked together to ensure the proposal was included in the final budget package.
The credit allows eligible taxpayers to choose between the new refundable Working Pennsylvanians Tax Credit or Pennsylvania’s existing Tax Forgiveness Program, depending on which provides the greater benefit.
“This bipartisan outcome reflects what happens when both chambers and both parties share the same goal, helping working families build security and opportunity,” Culver added.
CONTACT:
Sam Clepper (Culver)
Spencer Thornburg (Schwank)