Pennsylvania Governor Shapiro Highlights New Tax Credits for Working Families

New Working Pennsylvanians Tax Credit

• 💰 Governor Josh Shapiro announced the passage of a new state-level earned income tax credit, the Working Pennsylvanians Tax Credit, aimed at helping nearly a million residents.
• 💡 This credit is a percentage of the federal earned income tax credit, meaning anyone who qualifies for the federal credit will automatically receive the state credit by simply filing their taxes.
• 🎯 For a single mother of three earning $25,000 annually, this credit could provide an additional $770 back on state taxes.
• 📈 A grandmother earning $15,000 annually could receive approximately $443 back.
• 👨‍👩‍👧‍👦 Families with a dad earning $40,000 and a stay-at-home mom with two children could receive $514 back.

Addressing Rising Costs and Economic Support

• ⚠️ The governor acknowledged that federal policies, specifically tariffs, are contributing to rising costs for Pennsylvanians, but emphasized the state's focus on addressing costs at the state level.
• 📉 Over his first three years, Shapiro's administration has implemented seven cost-reduction measures and tax cuts for seniors, families, and businesses.
• 👵 The largest targeted tax cut for seniors in nearly two decades expanded the property tax rent rebate program, benefiting over 522,000 seniors.
• 👨‍👩‍👧‍👦 The child and dependent care tax credit was tripled, providing $136.5 million back to nearly 219,000 families.
• 🏢 A new employer child care contribution tax credit was created to encourage businesses to help cover employee child care costs.

Legislative Support and Bipartisan Effort

• 🤝 The Working Pennsylvanians Tax Credit was a bipartisan effort, with legislators from both sides of the aisle supporting its inclusion in the budget.
• 🗣️ Speaker Joanna McClinton highlighted the difficulty of budget negotiations but praised Governor Shapiro for staying at the table to ensure wins for working families.
• 📈 Representative Christina Sappi noted the significant increase in support for the state EITC, with the bill passing the House 185-18 this year compared to 122-81 in 2023.
• 🌟 The new tax credit is projected to put approximately $193 million back into the pockets of working Pennsylvanians.

Long-Term Vision and Fiscal Responsibility

• 📊 The recently signed budget is described as a balanced budget that cut taxes, made critical investments, and maintained $8 billion in reserves without touching the rainy day fund.
• 🚀 Pennsylvania is highlighted as the only state in the northeastern U.S. with a growing economy, with expectations for continued growth if federal policies are supportive.
• 💡 The governor expressed confidence in addressing