Friends of Education’s Jed Silversmith Shares Recommendations on Expanding EITC Access for Individuals and Businesses

April 14, 2026 | Harrisburg, PA

As part of its ongoing work overseeing Pennsylvania’s education system, the House Education Committee convened an informational hearing to examine the state’s Educational Improvement Tax Credit program.

The committee, which is responsible for legislation and policy affecting education from kindergarten through post-secondary levels, plays a central role in evaluating how public and private funding supports students across the Commonwealth. With 14 Democrats and 12 Republicans, and chaired by Rep. Peter Schweyer of Lehigh County, the committee regularly analyzes funding, school safety, teacher support, and access to educational opportunity.

This hearing focused specifically on the scale and oversight of Pennsylvania’s educational tax credit programs.

While testimony was formally delivered by representatives from state agencies and education organizations, Jed Silversmith of Friends of Education was present at the hearing and contributed a practical, real-world perspective on how the program operates and how participation can be expanded. He also addressed the emerging federal tax credit framework under the OBBBA, noting its potential to complement Pennsylvania’s EITC program and create additional planning opportunities for both individuals and businesses.

You can view the full House Education Committee hearing here.

Friends of Education Facilitates EITC Participation for Individuals and Businesses

Friends of Education operates as a facilitator within the Pennsylvania EITC program, helping individuals and businesses navigate the process of turning tax liability into educational impact.

Friends of Education:

• Helps individuals and businesses secure and deploy EITC tax credits
• Coordinates contributions to qualified Educational Improvement Organizations and Scholarship Organizations
• Structures transactions to align with tax planning goals
• Simplifies compliance, timing, and execution

As policymakers focus on oversight and transparency, Friends of Education focuses on making sure the program is accessible and usable for those eligible to participate.

Jed Silversmith’s Recommendations Focus on Expanding Participation

The hearing raised important questions around accountability and data transparency within Pennsylvania’s Educational Tax Credit programs.

“At the time of our review, key ETC outcome data were not available for analysis due to statutory limitations on data collection,” said Stacey Knavel of the Pennsylvania Independent Fiscal Office, who recommended enhanced reporting, expanded data collection, and greater program visibility.

Against this policy backdrop, Jed Silversmith’s perspective focused on a different but equally important dimension. While much of the discussion centered on data and oversight, his contribution emphasized how the program functions in practice and how participation can be expanded without disrupting what is already working.

His remarks provided a practical, real-world lens on EITC, illustrating how individuals and businesses navigate the system, structure contributions, and ultimately deliver funding to students. As one colleague, Todd Unger, noted, Silversmith’s perspective represented “where the rubber meets the road,” grounding the broader policy discussion in real life application.

Expanding Access to Pennsylvania EITC Tax Credits Using SPE Structures for Individuals and Pass-Through Entities

A central theme of Silversmith’s perspective is that Special Purpose Entities are a key tool for expanding access to Pennsylvania EITC tax credits, particularly for individuals and pass-through entities that have historically been underrepresented in the program.

Many eligible participants already exist but are not effectively accessing the program, including:

• Individuals with significant taxable income
• Owners of S corporations and partnerships
• Closely held businesses

Through proper SPE structuring, these participants can efficiently access EITC tax credits, align contributions with their tax planning strategies, and participate in the program in a way that would otherwise be difficult or impractical.

Friends of Education focuses on implementing these structures, guiding individuals and business owners through the process, and making EITC participation both accessible and executable.

Improve Understanding and Access

Schweyer noted concerns that the program should not be viewed solely as a corporate tax benefit.

“We want to ensure all children are getting a quality education through the program, the taxpayers are getting exactly what they are paying for and that the program is not just providing tax benefits to corporations.”

Silversmith’s recommendations align with that goal by expanding participation among individuals and closely held businesses, broadening the base of contributors and increasing engagement.

Focus on Execution and Proper Structuring

Another key takeaway from Silversmith’s perspective is that execution determines outcomes.

EITC participation requires coordination between:

• Donors
• Special-purpose entities in certain structures
• Scholarship and educational organizations

Without proper structuring, many eligible participants do not access the program or fail to maximize its benefits.

Friends of Education exists to manage this process and ensure efficient execution.

What the Hearing Confirmed About the EITC Program

Despite policy concerns, the effectiveness of the program remains clear:

• More than 68,000 students receive scholarships annually
• Average awards are approximately 2,100 dollars per student
• Significant private capital continues to support education through EITC

The challenge is not whether the program works, but how to expand access and improve transparency at the same time.

Federal Tax Credits Add a New Layer of Opportunity

In addition to state-level discussions, new federal tax credit frameworks for education-related contributions are beginning to emerge.

This creates additional opportunities for both individuals and businesses:

• The ability to combine federal and state tax strategies
• Increased capital flowing into education programs
• Greater importance of proper structuring and planning

As these opportunities evolve, experienced facilitation becomes increasingly important. Silversmith explained the likely upside to Pennsylvania if it elected to opt into the program.

Demand Continues to Exceed Available Credits

A consistent issue raised during the hearing is that demand exceeds available credits.

• Individuals and businesses are actively seeking participation
• Scholarship demand continues to grow
• Program caps limit total impact

This makes early planning and proper structuring essential.

Why This Matters for Individuals and Business Owners

For individuals and business owners, the EITC program represents a unique opportunity to align tax planning with meaningful impact.

Participants can:

• Reduce Pennsylvania tax liability
• Potentially benefit from federal tax strategies
• Support education in a direct and measurable way
• Integrate charitable giving into broader financial planning

Friends of Education helps translate this opportunity into a clear and executable strategy.

Final Takeaway

The House Education Committee hearing focused on oversight, accountability, and the future of educational tax credit programs.

Jed Silversmith’s perspective adds a critical dimension to that discussion.

The Pennsylvania EITC program is already effective, but its impact can grow significantly by expanding access to individuals and improving execution for all participants.

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Friends of Education plays a key role in making that participation possible.

Friends of Education turns this opportunity into a clear, actionable strategy—identifying eligibility, structuring SPE participation, coordinating contributions, and managing the process end to end.

To learn how you or your business can participate in the Pennsylvania EITC program and maximize available tax credit opportunities, contact us at https://pataxcredits.org/contact/