Working families across Pennsylvania are being crushed by the rising cost of child care. It is shaping major life decisions, from whether families have children to where they choose to live and work. Yet our tax code still uses expense limits that no longer reflect what families actually pay.

Child care costs have skyrocketed, but our tax code hasn’t kept up. The average cost of center-based infant care in Pennsylvania is nearly $15,000 a year, and families with two young children often pay more than $27,000 annually for child care. Yet Pennsylvania’s Child and Dependent Care Enhancement Tax Credit still limits eligible expenses to just $3,000 for one child or $6,000 for two or more children when calculating the credit, leaving many working families with tax relief that falls far short of the costs they actually face. Because eligible taxpayers receive a credit equal to only 20% to 35% of eligible expenses, families are receiving tax relief based on only a fraction of what they actually spend on child care.

Our legislation removes the outdated cap on eligible child care expenses for families with children under age seven, allowing the tax credit to better reflect the real cost of child care. Families will be able to claim the expenses they actually incur, providing more meaningful tax relief. Our bill means families could see their tax credit grow several times compared to what they receive today, providing much-needed relief to PA families struggling with the high cost of child care.

Affordable child care helps parents stay in the workforce, gives businesses access to the employees they need, and makes Pennsylvania a more affordable place to live and raise a family.

Please join us in co-sponsoring this important legislation.