HARRISBURG, PA — The Pennsylvania House of Representatives has approved legislation introduced by Rep. Christina Sappey, D-Chester, designed to provide financial relief to nearly one million working residents. House Bill 820 proposes a state-level tax credit amounting to 30% of a taxpayer’s federal Earned Income Tax Credit (EITC).
“All over our state, lower- and moderate-income working families are struggling to make ends meet,” Sappey said. “These are often dual-income households in lower wage jobs trying to make their rent and car payments, pay for child and health care, and put food on the table each day. When the cost of these things can’t be met, both our economy and these families suffer.”
The bill seeks to address challenges faced by ALICE households (Asset-Limited, Income-Constrained, and Employed), which earn above the Federal Poverty Level yet frequently fall short of meeting basic living costs. Nearly 41% of Pennsylvania households were classified as ALICE in 2022.
“ALICE households are one unexpected car repair, energy bill or medical bill from falling seriously behind. And when they do, it impacts all of us. Employers lose workers. Businesses lose customers. Dollars are not being spent in communities. And when ALICE families get too far behind, they have nowhere to turn but to government social safety net programs. We can prevent this from happening,” Sappey explained.
If enacted, the credit would offer families annual relief ranging from $200 to $2,000, based on income and family size. Sappey emphasized the broader benefits for the economy, stating, “For every dollar spent on a state EITC, Pennsylvania would receive four dollars back in economic growth and save three dollars on social spending.”
The bill now advances to the state Senate for consideration, with proponents highlighting its potential to strengthen the workforce, uplift families, and stimulate local economies.
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