Senator Lynda Schlegel Culver (R-27) and Senator Judy Schwank (D-11) announced that the Working Pennsylvanians Tax Credit has been included in Pennsylvania’s 2025–26 state budget. The initiative, which both senators co-led, aims to provide tax relief for working families across the state.
The new measure is modeled after the federal Earned Income Tax Credit and is expected to benefit approximately 700,000 households. It offers refundable tax relief intended to help families cover essential expenses such as child care, food, transportation, and housing.
Culver emphasized her longstanding support for this policy since her time in the House of Representatives. “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 described the tax credit as an important step for working families. “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.”
Earlier this year, a similar bill moved forward in the House while both senators introduced matching legislation in the Senate. They worked together to ensure its inclusion in the final budget package.
The new tax credit allows eligible taxpayers to choose between it or Pennsylvania’s existing Tax Forgiveness Program based on which option provides more benefit.
Culver highlighted bipartisan cooperation on this issue: “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.
