On Nov. 12th, Gov. Josh Shapiro signed the Working Pennsylvanians Tax Credit (WPTC) into law as part of the $50.1 billion budget, making Pennsylvania the 32nd state to offer a tax benefit to low-income workers. The federal Earned Income Tax Credit (EITC) is widely viewed as one of the largest and most effective anti-poverty programs for working-age people and families with children in the U.S. Pennsylvania’s new earned income tax credit borrows its design from the federal program, and includes design elements aligned with evidence from Penn LDI researchers. The WPTC is projected to provide $193 million in tax relief to nearly 1 million Pennsylvanians.
As the General Assembly considered the issue as part of the 2024 budget cycle, in July 2024, LDI Senior Fellows Aditi Vasan, Aaron Richterman, George Dalembert. and LDI Director of Policy Strategy Julia Hinckley briefed members of the Pennsylvania General Assembly and Governor Shapiro’s Office on the health impacts of tax credits for low income residents.