Summary
Pennsylvania Governor Josh Shapiro signed a new state budget worth $50.1 billion, introducing an earned income tax credit to provide nearly $193 million in tax relief for working families. The budget also increases funding for education and workforce initiatives. The tax credit aims to help around 940,000 Pennsylvanians by providing up to $805 in state tax relief based on income and dependents.
Key Facts
- Pennsylvania's new state budget is $50.1 billion.
- The budget introduces a Working Pennsylvanians Tax Credit, giving a 10% state-level earned income tax credit.
- The tax credit will provide $193 million in tax relief for working families.
- Around 940,000 Pennsylvanians are expected to benefit from this tax credit.
- Families could receive up to $805 in state tax relief based on their income and number of dependents.
- The budget includes over $900 million in new education funding, including $565 million for school adequacy funding.
- It allocates $25 million for child care workforce initiatives and $21 million for services for the elderly and food assistance programs.
- This budget takes effect immediately for the 2025-26 fiscal year.
