HARRISBURG, Pa. — Legislation to establish a tax credit for educators with out-of-pocket expenses, co-sponsored by state Reps. Nikki Rivera (D-Lancaster) and Ed Neilson (D-174th Dist.) was referred from the House Finance Committee on Tuesday, 25-1.
The legislation would provide a $100 refundable tax credit to teachers who spend their own money on classroom supplies and equipment. It would complement the $300 federal tax deduction for the purchase of unreimbursed classroom supplies.
The tax credit proposal would be administered separately from the federal deduction to ensure Pennsylvania teachers always have this option available to them.
“Our teachers give so much of themselves to educate our kids, and unfortunately this includes a good portion of their paychecks for necessary school supplies so their students can learn,” Rivera said. “I know from over 30 years of teaching experience in Lancaster County public schools that teaching is not a highly paid profession, and school budgets don’t have enough funds to cover all the classroom expenses. This bill would recognize teachers’ financial sacrifice by establishing a $100 tax credit for unreimbursed classroom supplies.”
According to Rivera, teachers across the country have reported that school budgets are insufficient to cover all classroom needs, so they’ve had to pay out of pocket for books, pens, paper, cleaning supplies, prizes, snacks, decorations, hand sanitizer and more.
During the 2024-25 school year, Pennsylvania teachers spent, on average, $979 of their own money on classroom supplies, which is higher than the $875 national average for U.S. teachers.
School budgets have not been able to keep up with rising inflation, which has led teachers’ spending on classroom supplies nationwide to rise 49% since 2015, according to Adopt a Classroom.
“Teachers work tirelessly to educate our youth and keep them engaged in school,” Neilson said. “Due to funding challenges in recent years, it’s often at their own financial expense. Our teachers should be reimbursed for their out-of-pocket expenses, so they stay incentivized in educating students.”
“With teachers in Pennsylvania earning an average salary of $53,701 per year before taxes, $975 is a significant financial sacrifice to make so all their students have the same opportunities to learn and grow academically,” Rivera said.
According to Forbes, teachers’ annual investments in school supplies for their own classrooms make up an average of 13% of their first month’s salary, and 95.8% of Pennsylvania teachers were not reimbursed in 2019-20 school year for spending their own money on school supplies.
Low salaries have led to 20% of teachers nationwide taking a second job, a 25% jump since 2023.
According to Rivera, teachers in schools with larger shares of students from low-income households spend about 20% more of their own money on supplies than teachers teaching more economically advantaged students.
She added that in high-needs districts, educator spending routinely has to go beyond purchasing just the normal classroom supplies.
“Sometimes teachers have to buy fans if there’s no air conditioning because drowsy kids can’t focus or snacks for kids from food-insecure households because they’re hungry and can’t study,” Rivera said.
“As of the 2024-25 school year, there are 125,592 teachers who may qualify for the tax credit in House Bill 1900. Our teachers give so much to our students, but they shouldn’t go into financial debt to make sure all our kids have the same opportunities in the classroom, regardless of their families’ financial backgrounds.”
The bill is now on its way to the House floor for consideration.
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