(WJET/WFXP/YourErie.com) — Eligible families can look forward to a new state tax credit when they file their taxes next year.
Beginning with the 2023 filing season, Pennsylvanians paying for child care services with a household income above 43,000 could receive a state tax credit of $180 for one child or $360 for two or more children. Families with a household income of less than $43,000 could receive $315 for one child or $630 for two or more children.
According to an announcement from Gov. Tom Wolf’s office, some 221,000 Pennsylvania families will benefit from the tax credit. The Economic Policy Institute estimates that the average cost of childcare for a family with two children in the Erie metro area is $17,381 per year.
“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,” Wolf 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.”
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The credit is part of a $25 million proposal in Wolf’s capstone budget for the Child and Dependent Care Enhancement Program.