Speaker McClinton, Rep. Davis celebrate expansion of PA’s Childcare tax credit

Pennsylvania House Democratic Caucus    February 8, 2024 | 2:04 PM

BRISTOL, Feb. 8 – House Speaker Joanna McClinton traveled to Growing Little Footprints Daycare Center in Bucks County today to laud the expansion of Pennsylvania’s Child and Dependent Care Tax Credit, an initiative championed by state Rep. Tina Davis of Bucks County.

McClinton and Davis were joined by state Sen. Steve Santarsiero, D-Bucks, state Rep. Brian Munroe, D-Bucks, state Rep. Tim Brennan D-Bucks, Valerie Hamilton, owner and director, Children of God Educational Services and Dan O’Brien, Policy Manager, Education and Family Stability, Children First.

Beginning this year, families and caregivers will be able to claim the equivalent of the entire federal credit, giving families the opportunity to claim up to $1,050 for one child, or $2,100 for two or more children. At least 80 percent of households in Bucks County who pay expenses for childcare or dependent care are eligible for this credit.

Davis initially introduced the credit as H.B. 1259, which passed the House with a bipartisan majority on June 12. While legislation awaited consideration in the Senate, Davis helped to amend the language of the bill into the state’s Fiscal Code bill, which passed in December.

“One of the biggest challenges working parents face is finding affordable childcare they can depend on while they’re at work – especially when the average cost can be over $1,000 per month,” Davis said. “The passage of the expanded childcare tax credit in Pennsylvania is a win for the working families of Bucks County and throughout Pennsylvania.”

Those who qualify for the federal credit qualify for the state credit. The amount claimed will be determined by household income and expenses -- ensuring that those who need the most, get the most. Households with a combined income of under $43,000 are eligible for the full credit of $1,050 for one eligible dependent and $2,100 for two or more. For households making more than $43,000, the maximum credit is $600 for one eligible dependent and $1,200 for two or more.

“House Democrats are delivering for all Pennsylvanians – from our students to our seniors to our working families,” said McClinton, D-Phila./Delaware. “Pennsylvania’s improved Child and Dependent Care Tax Credit will help families balance their budgets and businesses whose employees depend on reliable and consistent childcare to go to work.”

In 2023, Pennsylvania allowed families to claim a small percentage of the federal Child and Dependent Care Tax Credit. This gave them up to $180 in tax credits for one child, and up to $360 for two or more children.

“The expansion of the child tax credit here in Pennsylvania puts money back in the pocket of working families when they need it most,” said Santarsiero (D-10).  “This critical investment in families with young children will help more parents enter the workforce and help grow our local economy.  I’d like to thank my friend and colleague, Rep. Tina Davis, for advocating for this significant boost for Pennsylvania families.”

Added Munroe, “The expansion of the childcare tax credit is a true economic boost for all 67 counties in Pennsylvania, especially Bucks County. It allows those who might not have otherwise been able to afford childcare to put their children in daycare, which will allow them to not miss work. It will also be a boost to daycares. Many of them are operated by small business owners, who are currently struggling."

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