$25 Million Child Care Tax Credit Program Gives Back to Pennsylvania’s Families

child Care CreditCredit: Commonwealth Media Services

PENNSYLVANIA — Governor Tom Wolf visited Kiddie Space Heights yesterday with Department of Human Services Acting Secretary Meg Snead to spotlight his $25 million child care tax credit program. The program will give back $180 to $630 to Pennsylvania’s working families with young children. At least 221,000 families are expected to benefit from the program.

“Pennsylvania’s hard-working families deserve the chance to succeed. That’s why I created this child care tax credit program,” said Gov. Wolf. “With some money back in their pockets, they can work or go back to school while ensuring their children are thriving at a quality child care center.”

Modeled after the federal child care tax credit program, this state-level child care tax credit program benefits working families with children in daycare who already qualify for the federal program. The state child care tax credit is for 30% of the federally approved expense.

Pennsylvanians paying for child care services will be able to claim the credit when filing state taxes starting in 2023. Families could be eligible for:

  • $180 (one child) or $360 (two or more children) for households earning above $43,000, or
  • $315 (one child) or $630 (two or more children) for households earning less than $43,000.

“High-quality early education programs help build a foundation for children’s learning and development, and for parents, knowing that they can afford high quality, reliable care for their children while they are working is immeasurable,” said Acting Secretary Snead. “This tax credit will help ease the affordability burden on lower income, working families, and we must do everything we can to continue supporting parents and children in the commonwealth so they can continue to benefit from the incredible, life-shaping work our child care industry does every day.”

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