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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | April 3, 2024 04:40 PM |
|---|---|
| From: | Senator Michele Brooks |
| To: | All Senate members |
| Subject: | Employer Child Care Tax Credit |
| In the near future, I plan to introduce legislation establishing an Employer Child Care Tax Credit to address the vital need for working families of Pennsylvania. My legislation will amend the Tax Reform Code of 1971 to provide for the Employer Child Care Tax Credit to benefit businesses who offer child care assistance. It is my hope that this legislation will encourage businesses to offer child care to their employees, which will be accomplished through the implementation of the Employer Child Care Tax Credit. This will provide businesses a tax credit equal to a certain percentage of their child care expenses. One of the challenges I hear from working families is the escalating cost of child care and how it directly impacts employment opportunities and the household bottom line. It is not uncommon to hear of parents who are paying tens of thousands of dollars a year in child care expenses. While Pennsylvania offers an individual child care tax credit in line with the federal government, there are still many families that make the decision to not join the workforce because of the high cost of child care. This partnership between businesses and government could actually help with workforce issues, as well as help those families that would need to pay exorbitant child care costs. Unfortunately, many families do not have the support network that many of us had when we were raising our children. In addition, if we did send our children to child care we weren’t paying in excess of $15,000 a year. Employer Child Care Tax Credit will not be able to be sold, assigned, or carried back. The tax credit will be capped at $20 million annually and would be scheduled to sunset for taxable years ending after December 31, 2034. It will also require the Department of Revenue Secretary to submit an annual report to the General Assembly indicating the effectiveness of the credit provided by this legislation. Please join me in supporting this important legislation that will incentivize our Commonwealth employers to improve child care opportunities for their employees. |