Lehigh Times

Governor Tom Wolf visited the Early Learning Center at Crispus Attucks in York on Tuesday and highlighted a new state, child tax credit program that would support working families while ensuring “unbarred access” to early childhood education.

According to a release from the governor's office, Wolf's newly approved budget has secured $25 million for the Child and Dependent Care Enhancement Program. This program is modeled from the federal child care tax credit program and benefits working families with children in day care that already qualify for the federal tax credit program. Nearly 221,000 Pennsylvanian families will benefit, and the state child care tax credit is for 30% of the federally approved expenses.

“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,” the governor said. “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.”

Those paying for child care services can claim the credit when filing state taxes beginning in 2023. Families could be eligible for $180 for one child, or $360 for two or more children in households earning above $43,000. For households earning less than $43,000, it would be $315 and $630.

“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,” state Rep. Carol Hill-Evans said. “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.”

Wolf secured $1.8 billion in his budget for education, which includes a $79 million increase for early learning through Pre-K Counts and Head Start. There was also $140 million in direct property tax relief; $375 million for safe and affordable housing through creating new units, repairing existing units, and funding home repairs; $90 million for stabilizing the child care workforce through recruitment and retention payments; $1 million of a Hunger Free Campus Initiative; and $100 million for adult mental health services and creating a Behavioral Health Commission.

According to the Economic Policy Institute, the average cost of childcare in Pennsylvania is about $12,000, and this burden has become even worse with rising inflation and gas prices. Crispus Attucks CEO Bobby Simpson said quality childcare is the most needed and most expensive service for hardworking families.

“This new tax credit will go a long way in helping families acquire good-quality childcare, it will be a tremendous help to our local families,” Simpson said.