News

October 18, 2022

State Child Care Tax Credit to Help Families

The Child and Dependent Care Enhancement Program, a state-level child care tax credit program modeled after the federal child care tax credit program, can be claimed by families when filing state taxes beginning in 2023.

About the Child and Dependent Care Enhancement Program

Modeled after the federal child care tax credit program, this state-level child care tax credit program benefits working families with children in child care who already qualify for the federal program.

Pennsylvanians paying for child care services will be able to claim the credit when filing state taxes starting in 2023. Families could be eligible for:

  • $180 (one child) or $360 (two or more children) for households earning more than $43,000, or

  • $315 (one child) or $630 (two or more children) for households earning less than $43,000.

According to a Department of Human Services news release, it’s estimated that more than 220,000 Pennsylvania families will benefit from this refundable tax credit. The state child care tax credit is for 30% of the federally approved expense.