Shusterman introduces Pa. Child and Dependent Care Tax Credit
PAOLI, Nov. 5 – State Rep. Melissa Shusterman, D-Chester/Montgomery, is introducing legislation that would help families returning to work after the pandemic maintain their childcare.
A member of the Pa. Workforce Development Board, Shusterman said the legislation would offer a Pennsylvania Child and Dependent Care Tax Credit to help Pennsylvanians get back to work without being overburdened by the cost of childcare.
Under the proposed legislation, taxpayers who qualify for the federal child and dependent care tax credit would be eligible for the Pennsylvania tax credit. Taxpayers with one qualifying dependent would receive a $350 tax credit, while two or more dependents would result in a $700 tax credit.
Although there is the federal child and dependent care tax credit, Pennsylvania is one of 19 states that does not offer tax credits for child and dependent care.
Shusterman’s legislation would change this and offer Pennsylvania families a much-needed financial break, as childcare costs the average family $11,842 per year, or 8% more than the average renter pays.
“Americans suffered tremendously during the pandemic, not only physically but mentally and especially financially,” Shusterman said. “As a member of the Pennsylvania Workforce Development Board, it is important to me that families have what they need to succeed in their employment − this legislation would remove one more barrier between employment and quality childcare.”
Shusterman said that much like $1.2 million in tax credits awarded to Phoenixville in October for construction of over 1,000 affordable senior living homes, this legislation too would increase the quality of life for thousands of Pennsylvania families.