PENNSYLVANIA — The Pennsylvania House of Representatives this week passed a tax code bill that includes a provision to expand the state’s Child and Dependent Care Enhancement Tax Credit. The provision, championed by State Reps. Tina Davis, D-Bucks, and Melissa Shusterman, D-Chester, aims to increase the percentage taxpayers can claim as well as raise the allowable expenses.
“Families are faced with steep childcare costs and difficult decisions,” Davis said. “This bill will provide a much-needed tax break to families throughout the commonwealth. Our children deserve exceptional childcare, and parents should be able to provide it without worrying about breaking the bank.”
The provision comes in response to the end of pandemic-era federal aid to childcare providers on September 30. With nearly 3,000 Pennsylvania childcare programs expected to close, impacting over 152,000 children according to The Century Foundation, Davis and Shusterman believe their provision will help address this looming childcare crisis.
The bill also includes other substantial wins for communities across the state. An Earned Income Tax Credit for Pennsylvanians, investments in affordable housing and public transportation, and tax reforms to make Pennsylvania more competitive are all part of the House’s tax cut plan.
“This is a $1 billion investment in Pennsylvania’s economy and working families,” Shusterman said. “It strengthens the state’s business climate, encourages growth, and promotes tax fairness.”
Both lawmakers agreed that the plan is a responsible approach to closing this year’s budget cycle. By offering tax credits that will spur economic activity, they believe it will boost working families and businesses that drive the economy and create jobs.
House Bill 1219 is an act amending the Tax Reform Code of 1971, with provisions for personal income tax, corporate net income tax, realty transfer tax, entertainment production tax credit, Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, neighborhood assistance tax credit, Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, Public Transportation Trust Fund, and general provisions.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.