Pennsylvania still on the fence about federal school choice tax credits

(The Center Square) – Pennsylvania’s public school students could benefit from a new federal education tax credit program next year, but the state has yet to opt into it.

Thirty-one others have done so or announced plans to participate. Meanwhile, Gov. Josh Shapiro says he is waiting for additional federal guidance, as lawmakers seek out Pennsylvania’s participation through legislation.

The Federal Scholarship Tax Credit program, or FSTC, also known as the Education Freedom Tax Credit, was created by Congress in 2025 through the Working Families Tax Cuts Act as part of the One Big Beautiful Bill.

It establishes a new federal tax credit of up to $1,700 for contributions made by an individual to Scholarship Granting Organizations, or SGOs – nonprofits that accept qualified donations and use the funds to provide scholarships for education-related servic...