Public hearing testimony reveals need for Working Pennsylvanians Tax Credit
Proposal could benefit nearly 1 million Pennsylvania families
Rep. Steve Samuelson March 12, 2025 | 3:12 PM
KENNETT SQUARE, March 12 – Today, the state House Finance Committee heard testimony at the Kennett Library from area organizations and advocates about how an additional state-level tax credit would allow Pennsylvanians to better manage their personal finances and plan for their family’s financial and educational future.
State Rep. Christina Sappey, D-Chester, hosted the public hearing and is the prime sponsor of the Working Pennsylvanians Tax Credit proposal (H.B. 820).
“The Working Pennsylvanians Tax Credit would be a smart investment in our hardworking Pennsylvanians and their families,” explained Sappey.
“Pennsylvania’s low wage-earning families are finding a middle-class life out of reach, living paycheck-to-paycheck, and having to make tough choices like choosing between going to work or paying for childcare, or skipping a doctor’s visit because of a car repair bill, for example. This struggle has far-reaching economic implications not only for our workforce, but for our business owners too. State-level earned income tax credits promote work, additional education, and keep workers at work. It’s a smart investment also because for every dollar spent on a state earned income tax credit, $4 in revenue is generated. I can’t think of a better way to generate revenue and keep folks who want to work at work."
State Rep. Steve Samuelson, D-Northampton, chairman of the PA House Finance Committee, expressed his support for the proposal.
“Our series of hearings on this proposal have shown the benefit this would provide. This state-level earned income tax credit would not only help hardworking Pennsylvanians, but it would also drive our economy forward by encouraging workers to stay in the commonwealth. That helps employers, businesses, and our workforce. This concept has proven successful in other states; it’s time for us to invest in working Pennsylvanians and their families.”
The Working Pennsylvanians Tax Credit would provide eligible Pennsylvania taxpayers with a refundable credit equal to 30% of the amount they received in their federal Earned Income Tax Credit to help with the costs of childcare, food, transportation and other household expenses. The proposed state-level credit would likely benefit nearly 1 million Pennsylvanians and range from nearly $200 to over $2,000 depending on family size and income limits, in addition to the credit they already receive at the federal level. If Pennsylvania had the Working Pennsylvanians Tax Credit in 2023, the average eligible family would have received a tax credit of approximately $650 from the Commonwealth in 2024.
Laura Manion, president and CEO of the Chester County Chamber of Business and Industry testified that reducing the tax burden for low- and middle-income families would make Pennsylvania more competitive. “We’ve seen how changes to the cost of living have tightened disposable income. House Bill 820 offers targeted assistance to workers and families who need it the most. This is sound fiscal policy that would allow workers to retain more of their earned income and reduce economic barriers to attracting workers to our employers in Chester County.”
Leah Reynolds, CEO of Kennett Area Community Service, commended Sappey for authoring H.B. 820, calling it a practical, evidence-based solution. “This would have a real and lasting impact on families right here in Chester County and across the state of Pennsylvania. by putting resources back in the hands of lower-income working families. A state-level EITC would pay for itself and reduce spending on social support systems. The WPTC would be a crucial step to ensuring economic stability for hardworking Pennsylvanians.”
Amanda Blevins, director of Community Impact Initiatives with Chester County United Way, testified to the direct impact the tax credit would have on financial stability for local Asset Limited, Income Constrained, Employed households. “The Chester County United Way is committed to building financially resilient families. ALICE households in our communities are just one emergency expense away from financial disaster. For so many of the calls that we receive for help, the amount they would receive in a WPTC would stabilize their situation and help them achieve stability.”
Marci Lesko, CEO of United Way of the Greater Lehigh Valley attested to the positive ripple effect of earned income tax credits. “The United Way of the Greater Lehigh Valley is dedicated to improving community conditions. Education is one of the most effective anti-poverty solutions and our understanding of that comes through our investments in our nationally recognized Community Schools Model and Early Learning programs. Many families may use their refunds to positively support their children’s development and access educational materials and opportunities for their families. Rigorous research shows that federal and state EITCs lead to better economic, social and health outcomes for families in our communities and benefit Pennsylvania as a commonwealth.”
There are 31 states, in addition to the District of Columbia, Guam, and Puerto Rico that currently offer a state tax credit based on the federal earned income tax credit.