Pa Residents Should Be Able to Take the Education Freedom Tax Credit

There's little to boast about in the Big Beautiful Bill Act passed by Congress. There's lots of room to complain. One feature that strikes me as fair is the Education Freedom Tax Credit, which allows taxpayers to claim a tax credit of up to $1,700 for donations made eo eligible non-profits that educate kids, which includes most parochial schools. It gives parents additional options in deciding where their kids should be educated. My evil Republican brother recently penned an op-ed on this topic, which was published by a local newspaper over the weekend. Here's what he wrote:

Beginning on January 1, 2027 the Federal Education Freedom Tax Credit (EFTC) allows individual taxpayers to receive a dollar-for-dollar tax credit of up to $1700 annually for donations made to eligible non-profits that support elementary and secondary education. A Federal tax credit reduces the amount of income tax owed on a dollar-for-dollar basis. If you donate $100 to an eligible non-profit, your federal tax bill goes down by $100 when you file your IRS tax return.

The Educational Freedom Tax Credit is part of the Working Families Tax Cuts Act signed into law on July 4, 2025. Also known as the Big Beautiful Bill, it includes things like no tax on tips, no tax on overtime, no tax on Social Security, and the Trump accounts for newborns.

The EFTC supports education by allowing taxpayers to donate to scholarship organizations. These organizations fund scholarships for tuition, fees, tutoring, special needs services, and even classroom supplies for both public and private schools. The EFTC gives the taxpayer a say in directing their tax dollars while providing needed help. A win-win for everybody and it costs the State nothing.

How does the EFTC work? First, a state must agree to opt-in. In Pennsylvania the decision to opt-in rests with Governor Shapiro. Second, the state provides a list of eligible Scholarship Granting Organizations (SGO’s) to the Federal government. Third, the taxpayer makes a charitable contribution to the SGO. Fourth, during tax season the tax payer claims a dollar-for-dollar credit for tax owed up to $1700 annually.

In the Lehigh Valley potential SGO’s include agencies like the VIA of the Lehigh Valley, the United Way, the Jewish Federation of the LV, the Allentown Art Museum, Lehigh County Community College, the Volunteer Center of the LV, the Hillside School, and others.

Here are some examples of what these Scholarship organizations provide. The Allentown Art Museum uses scholarship funds to provide art education for School Districts in the Lehigh Valley. The Lehigh Community College uses scholarship funds to help high school students earn college credit early. The VIA uses tax credit donations to fund the Lehigh Children’s Academy. All these potential SGO’s provide valuable and needed services for our communities.

So far, 30 states including neighboring Ohio and New York and West Virginia have agreed to participate in the EFTC program. However, In Pennsylvania Governor Shapiro has declined to participate claiming that he needs more Federal guidance

In June the US Treasury department provided the awaited guidance. There is still no decision from the Governor’s office. Crickets.

Also keep in mind that Pa already successfully manages other state level equivalents like the Educational Improvement Tax Credit (EITC) and the Opportunity Scholarship Tax Credit (OSTC).

Of note, even if Shapiro declines to participate, taxpayers can still claim the credit, but the contributions will flow across State lines to other non-profits that may not directly benefit our students.

There is a noticeable pattern. Shapiro’s refusal to participate in the Great American Fair, his numerous lawsuits against the Federal Government, and his stall on the EFTC reveal a Governor who is controlled by partisan bias and not the best interests of Pennsylvanians.

In my opinion, the Governor’s flimsy excuses betray his prejudice against anything Trump. His political ambitions and loathing of the president have clouded his judgement about what’s best for Pennsylvania.

He is also too cozy with labor organizations like the Pennsylvania State Education Association which generally oppose educational choice and anything that will loosen their grip on the Public Education system. The Governor’s inaction can lead to real harm for residents of PA.

One of Shapiro’s notable sayings is that he likes to “Get sh__t done”! Will Governor Shapiro “get it done” and opt in to the Education Freedom Tax Credit? Or will he continue to use sham excuses to deny Pennsylvanians a benefit that costs the state nothing, helps taxpayers and benefits our students?

I encourage Democrats, Republicans, and Independents to contact their state representatives and the Governor’s office in support of opting into the Educational Freedom Tax Credit.