Bill > HB1534

This bill introduces the Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, which provides tax credits for working individuals with child or dependent care expenses. The bill amends the Tax Reform Code to create a new tax credit that allows taxpayers to claim a percentage of their employment-related expenses for child and dependent care. For the 2021-2022 tax year, taxpayers can claim a 30% tax credit for up to $3,000 in expenses for one qualifying individual or up to $6,000 for two or more qualifying individuals. Starting in 2023, this percentage increases to 100% of the same expense limits. The bill also creates an alternate credit for taxpayers who participate in dependent care assistance programs but did not receive the federal child care tax credit. Taxpayers can claim these credits against their state tax liability, and if the credit exceeds their tax liability, they may receive a refund. The Department of Revenue is required to submit an annual report to the General Assembly detailing the number and amount of tax credits approved, claimed, and refunded. The bill repeals a previous article in the Fiscal Code and ensures continuity of existing programs and obligations.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1534