HARRISBURG – Senate Education Committee Chair Lynda Schlegel Culver (R-27) is joining a bipartisan group of state senators working to ensure Pennsylvania benefits from a new federal tax credit program that could create additional learning opportunities for students and families.
Senator Culver is working with Senate President Pro Tempore Kim Ward (R-39), Senate Majority Leader Joe Pittman (R-41), Senate Appropriations Committee Chair Scott Martin (R-13), Sen. Judy Ward (R-30) and Sen. Anthony Williams (D-8) to introduce legislation that would allow Pennsylvania families to benefit from the Federal Scholarship Tax Credit, which was created by Congress last year to support students attending both public and private schools.
The federal program allows taxpayers to receive up to $1,700 in tax credits for contributions to approved nonprofit Scholarship Granting Organizations. Those organizations use donated funds to provide scholarships that help students pay for education-related expenses, including tuition, fees, academic tutoring, special education services, technology services and classroom supplies at qualifying public or private schools.
For Pennsylvania students to be eligible for these scholarships, the Commonwealth must opt into the program by Jan. 1, 2027, through legislation or an executive order signed by the governor. If Pennsylvania does not opt in, taxpayers here may still claim the federal tax credit, but the scholarship dollars generated by their donations would instead benefit students in other states.
“As chair of the Senate Education Committee, my focus is always on what will best support Pennsylvania students and families,” Culver said. “This program is already available, and opting in would allow donations made by Pennsylvanians to help students here at home rather than in other states. There is no cost to Pennsylvania to participate, so it makes sense to give our students the opportunity to benefit.”
According to the Internal Revenue Service, 30 states across the country have already opted into the program.
A recent report estimates that the Federal Scholarship Tax Credit will generate an additional $24 billion nationwide in education funding annually. Pennsylvania students could miss out on hundreds of millions of dollars each year if the Commonwealth does not opt in, even though participation would come at no cost to Pennsylvania.
Initial guidance on the program was released by the federal government in June, and the IRS expects full regulations to be issued in September.