The Dependent Care Enhancement Tax Credit recently approved by the Pennsylvania Legislature is a monumental milestone in supporting parents and caregivers, offering relief to working families throughout Pennsylvania.
Recognizing the challenges posed by the lack of accessible and affordable child care, employers raised concerns about hiring difficulties, and the child care tax credit directly addresses this issue, providing substantial relief for both businesses and families. Under the new regulations, individuals can now claim 100% of the federal credit, with amounts reaching $3,000 for a single dependent and $6,000 for two or more dependents. Families are eligible for credits of up to $1,200 for single-child households and up to $2,100 for those with multiple children.
Anticipated to benefit over 200,000 families statewide, this expansion assists in overcoming barriers to access and managing the escalating costs of child care. In 2022, the Department of Labor reported median expected child care costs ranging from $8,310 to $17,171 for younger children. The legislation empowers parents to enter or reenter the workforce, addressing the child care crisis that has hindered our economy, costing employers over $3 billion annually and the commonwealth of Pennsylvania $6.65 billion.
The focus now shifts to addressing the child care staffing crisis, ensuring that more children have access to high-quality care. A heartfelt thank-you is extended to our state legislators and the Westmoreland County delegation for their unwavering support, contributing to the development of a more robust and inclusive workforce.
Dan DeBone
Greensburg