Commonwealth Foundation Applauds Senate Republicans for Advancing Tax Relief and Expanding Educational Opportunity

Harrisburg, Pa., June 25, 2026 — Today, the Pennsylvania Senate, in an overwhelmingly bipartisan vote of 44 to 6, advanced House Bill 1667, legislation that delivers meaningful tax relief to families and businesses while also expanding access to educational scholarships for thousands of students across the commonwealth. 

The Senate’s legislative package includes repealing Pennsylvania’s Gross Receipts Tax on electricity, providing $1.7 billion in tax relief and saving families $500 annually on their electric bills. The package also increases funding for the Educational Improvement Tax Credit (EITC) by $25 million, allowing nearly 10,000 additional students to access the educational opportunities that best meet their needs. 

Senate Republican Leadership’s actions stand in sharp contrast to efforts in the Pennsylvania House of Representatives, where House Democrats advanced legislation this week that would dismantle Pennsylvania’s tax-credit scholarship programs and originally proposed taking away educational opportunities for nearly 30,000 students. 

New polling from the Commonwealth Foundation, released yesterday, shows 65 percent of Pennsylvanians oppose reducing the amount of tax-credit scholarships available to students. 

The EITC and Opportunity Scholarship Tax Credit (OSTC) programs have transformed the lives of students and families across Pennsylvania for 25 years, but demand continues to far exceed available scholarship funding. Nearly 70,000 students remain on wait lists due to program caps. Expanding these programs would give more working families access to the schools that best fit their children’s needs. 

At the same time, eliminating the Gross Receipts Tax would remove a hidden tax on electricity that drives up energy costs for households and employers alike. With families already facing higher costs for everyday necessities, a nearly $500 annual tax break would provide meaningful relief and prioritize energy affordability, all while making Pennsylvania more economically competitive. 

Megan Martin, chief operating officer and general counsel of the Commonwealth Foundation, issued the following statement in response:   

“Pennsylvania families need relief from rising costs, and they want greater access to educational opportunities. While Pennsylvania House Democrats are pushing legislation that originally proposed taking scholarships away from about 30,000 students, Senate Republicans are advancing reforms that would put nearly $500 back into the pockets of families and help thousands more children access a quality education. 

“The contrast could not be clearer. Pennsylvania families deserve policies that lower costs, expand educational opportunity, and make our commonwealth more affordable and competitive.”