PHILADELPHIA, Feb. 15 – Today, members of the Philadelphia House Delegation held a news conference at the Early Learning Literacy Academy highlighting the expansion of the state Child and Dependent Care Enhancement Tax Credit.

This tax credit eases the burden for working families who pay for and rely on child and dependent care in order to work. These families claim this tax credit when they file their federal and state tax returns.

Over 27,000 working parents in Philadelphia will see their state tax credits more than triple under the expanded credit.

“Families shouldn’t have to choose between going to work and having quality care for a loved one, or have to work just to pay for care,” said Philadelphia House Delegation Chair Morgan Cephas. “We fought and won for working families prioritizing this significant increase in the Child and Dependent Care Enhancement Tax Credit. I’m elated to know that so many families across Philadelphia will greatly benefit from this increase.”

Pennsylvania will now provide a 100% match to the federal tax credit. Prior to this expansion the tax credit was equal to 30% of the federal credit.

“House Democrats are delivering for all Pennsylvanians – from our students to our seniors to our working families,” said House Speaker Joanna 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.”

The previous one-child credit of $180 goes up to as much as $1,050 depending on household income and expenses for 2023 tax returns. The previous two-or-more children credit of $360 goes up to as much as $2,100 depending on household income and expenses.

“This expanded tax credit for working families is what a people-first agenda looks like," said House Appropriations Committee Chairman Jordan Harris,” D-Phila. "House Democrats continue moving legislation in a direction that will improve the lives of all Pennsylvanians, young and old, and we look forward to continuing to do what’s best to improve communities in Philadelphia and around the state.”

People who qualify for the federal credit also qualify for the state credit.

“The Child and Dependent Tax Credit enhancement is not only about fiscal policy and numbers – it’s lifechanging support for families, empowering them to succeed in fulfilling careers without the financial burdens,” said state Rep. Malcolm Kenyatta, D-Phila. “It stands as a testament to Democrats’ commitment to empowering families, ensuring that every child's potential is nurtured, and every family's journey is marked by opportunity and shared success."

The legislators were joined by daycare workers and parents who will benefit from this increased tax credit, including: LaToya Monroe, Executive Director and Owner, Early Literacy Academy; Damaris Alvarado-Rodrigues, Executive Director and Owner, Children’s Playhouse; and Areyenis “Ms. Genie” Perry, Parent and Teacher at Early Literacy Academy. 

More information about this program can be found at Child and Dependent Care Credit (pa.gov)