House Finance Committee advances state earned-income credit, beginning-farmer credit and three tax-collection and lottery bills

HARRISBURG — The House Finance Committee on Wednesday reported several tax-related bills to the full House, advancing a state earned-income tax credit and other measures affecting local tax collection and the state lottery.

The most contested measure was House Bill 820, the "Working Pennsylvania" earned-income tax credit. The committee reported the bill by a roll-call vote of 17 yes and 9 no after members debated its fiscal impact and policy goals.

"This is an earned income tax credit that mirrors the federal earned income tax credit," Representative Sapi said in remarks summarizing the bill's intent, adding that the credit supports low-wage workers and helps them stay in the workforce. Committee materials include a fiscal estimate from the Department of Revenue projecting a first-year cost of about $598,000,000 and higher annual costs in later years. Representative Fritz warned the committee that "this is a $600,000,000 hit" and said she could not support the bill without offsetting reductions in other spending. Representative Jones and Representative Waxman spoke in favor, noting expected returns to the economy and lower reliance on social services.

The committee also reported House Bill 242, which updates the beginning-farmer tax credit. Committee executive director Mark Forman summarized the bill and Representative Paul Friel, the prime sponsor, told the panel the…