- Pennsylvania Senate leaders introduced Scholarship Tax Credit legislation on August 5, 2026, but the state has not opted in.
- Pennsylvania must approve participation by January 1, 2027, or donors may fund scholarship groups in other states.
- The federal credit offers up to $1,700 for donations to Scholarship Granting Organizations serving students.
Pennsylvania Senate leaders announced legislation on August 5, 2026, to make families eligible for the new federal Scholarship Tax Credit program, but the state has not yet opted in. Senate President Pro Tempore Kim Ward led the push with lawmakers from both parties.
Pennsylvania must approve an opt-in by January 1, 2027. The state could act through a governor’s order or a state law. Without either action, Pennsylvania taxpayers could still claim the federal credit, but their donations would support scholarship organizations in other states.
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The announcement came from a bipartisan group that included Democratic Sen. Anthony Williams alongside Republican Senate leaders. Ward’s office said the legislation would keep the program’s benefits available to Pennsylvania families.
Gov. Josh Shapiro has not committed the state to an opt-in. He said he was “awaiting federal guidance to address key questions” about the program.
The federal credit would allow donors to claim up to $1,700 for contributions to nonprofit Scholarship Granting Organizations. Those organizations could direct funding toward tuition, fees, tutoring, special education services, technology services, and classroom supplies.
The proposal is being framed as support for students attending public and private schools. Pennsylvania’s decision remains unsettled as the administration reviews the federal guidance and lawmakers prepare their bill.
Other states have already moved toward participation. One count put the number at 30 states in early August, while another said 31 states had opted in by August 3, 2026.
Pennsylvania’s existing tax-credit programs remain funded at $575 million
Pennsylvania already supports school-choice tax credits through the Educational Improvement Tax Credit and the Opportunity Scholarship Tax Credit. Those programs remain funded at $575 million for fiscal year 2026-27.
The Pennsylvania Department of Community and Economic Development describes several EITC credit structures. General contributions typically qualify for a credit equal to 75 percent of the contribution, capped at $750,000 per taxable year. A two-year commitment can raise the credit to 90 percent.
Pre-kindergarten contributions follow separate limits. The credit can cover 100 percent of the first $10,000 and up to 90 percent of the remaining contribution, subject to a $200,000 annual cap.
| Pennsylvania provision | Credit or funding level | Condition or cap |
|---|---|---|
| Existing EITC and OSTC programs | $575 million | Fiscal year 2026-27 |
| General EITC contribution | 75 percent | Up to $750,000 per taxable year |
| EITC with a two-year commitment | 90 percent | Two-year commitment |
| Pre-kindergarten EITC | 100 percent of the first $10,000; up to 90 percent of the remainder | $200,000 annual cap |
The legislative sponsors include Senate Majority Leader Joe Pittman, Appropriations Chair Scott Martin, Education Chair Lynda Schlegel Culver, and Sen. Judy Ward, along with Williams. Their effort puts the federal program before state policymakers while Shapiro’s administration continues seeking answers from federal officials.
As of August 16, 2026, Pennsylvania had not finalized its participation. The federal deadline leaves the governor and lawmakers to determine whether the commonwealth will direct taxpayer-supported scholarship giving toward organizations serving Pennsylvania students.
