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Kristen Rotz, President of United Way of Pennsylvania (UWP), testified before the House Finance Committee on February 26, 2025, urging lawmakers to consider the benefits of implementing a state Earned Income Tax Credit (EITC) in Pennsylvania. UWP, a 501(c)(3) nonprofit organization, works to build financially resilient families and thriving communities throughout the state.

In her testimony, Rotz highlighted the financial struggles of ALICE (Asset Limited, Income Constrained, Employed) households, which represents 28% of Pennsylvanians. These workers earn above the federal poverty line but still cannot afford basic necessities. Federal programs like the EITC offer critical support, but many of these families earn too much to qualify for other forms of public assistance. Rotz stressed the importance of expanding the state’s efforts to help these families through a state-level EITC.

Rotz pointed to the success of similar programs in other states, noting that 31 states and Washington, D.C., currently offer EITC relief. A study commissioned by UWP found that a refundable state EITC could provide significant financial benefits for Pennsylvania’s working families, ranging from $197 to $594 per household depending on the credit percentage. The report also revealed that a 10% state EITC could cost the state $80.5 million but would generate at least $562 million in economic benefits annually. With a 25% credit, the benefits could rise to over $1.2 billion.

Rotz argued. The state EITC would not only help families make ends meet but also stimulate local economies, reduce public assistance costs, and increase state tax revenue. She also highlighted the role of Volunteer Income Tax Assistance (VITA) programs, which help eligible households access federal tax credits like the EITC.

As UWP continues to push for the implementation of a refundable state EITC, Rotz expressed hope that 2025 could be the year Pennsylvania provides much-needed relief to its working households.

The full testimony can be viewed here.