Harrisburg, PA — November 12, 2025 — The 2025-26 state budget establishes the Working Pennsylvanians Tax Credit, a program developed through bipartisan legislation sponsored by Sen. Judy Schwank (D-Berks) to provide tax relief for working families.
Schwank and Sen. Lynda Schlegel Culver (R-Northumberland) introduced legislation earlier this session to create the tax credit program. Language based on their proposal was included in House Bill 416, the fiscal code bill.
Pennsylvania now joins 31 other states in implementing a version of the Earned Income Tax Credit (EITC). According to United Way data, approximately 12% of Pennsylvania households live below the federal poverty level and another 28% fall under the United Way’s ALICE threshold, meaning they earn above poverty but still struggle to afford basic needs.
In the 11th Senatorial District, nearly 25 thousand households will be eligible for the EITC under the new program. 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 in Berks County 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.”
The legislation received strong support from the United Way of Pennsylvania, which called the tax credit a smart, bipartisan investment in the state’s workforce and local communities. Below is a statement from the organization.
“United Way of Pennsylvania strongly supports the Working Pennsylvanians Tax Credit. This bipartisan policy is one of the most effective ways to help working families build financial security. A refundable state Earned Income Tax Credit would provide tangible relief to ALICE households across the state who struggle to afford basics like housing, child care and food. The Working Pennsylvanians Tax Credit puts more money back into the hands of hardworking Pennsylvanians, strengthening families and our local economies across the commonwealth.”
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