YORK, Pa. (WHTM) – Pennsylvania Governor Tom Wolf visited the Early Learning Center at Crispus Attucks in York to highlight a new state child care tax credit program.

The program is modeled after the federal program to support Pennsylvania families.

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The $25 million Child and Dependent Care Enhancement Program was approved in the state’s recently-passed budget. The state-level child care tax credit program benefits families with children in daycare who already qualify for the federal program. I

According to the Governor’s office, it’s estimated that nearly 221,000 Pennsylvania families will benefit from this refundable tax credit. The state child care tax credit is for 30% of the federally approved expense.

“Cost should never be a barrier for parents looking for an educational, safe, supportive, and fun environment for their children while they’re at work each day,” said Gov. Wolf. “With cost as a barrier our workforce suffers and the success of Pennsylvanians is stifled. I wanted to create this state-level child care tax credit to support our hard working families, our workforce, our children, and our combined success in this commonwealth.”

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.

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“Pennsylvania families deserve our help now more than ever. With the cost-of-living at an all-time high and with the extraordinary surplus in our Rainy Day Fund, now is the time to be investing in our families,” said Rep. Carol Hill-Evans. “In addition to financially supporting families and allowing parents to return to work, this will give a boost to the childcare sector, which is still recovering from the pandemic. Right now, over 90% of childcare centers are facing worker shortages. With more families able to afford childcare, these centers will be closer to pre-pandemic attendance levels.”

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