Permanent Child Care Tax Credit, One-Time Property Tax Relief Now Available in Pa.

woman with kids at a table
Image via iStock.
Gov. Wolf's child care tax credit will now help thousands of Pa. families.

Families in Pennsylvania will now be able to claim thousands of dollars in benefits, thanks to a new, permanent child care tax credit approved by Gov. Tom Wolf. The break is part of the state’s new $45.2 billion budget, writes Kate Huangpu for the Pittsburgh Post-Gazette.

The budget also contains a onetime, $140 million expansion of the property tax credit for low-income and older Pennsylvanians.

The Child and Dependent Care Enhancement Program returns up to 30 percent of child care-related expenses claimed by filers on their federal returns. People who fall under a certain income level and have one or more dependents are eligible. Expenses claimed max out at $3,000 for those with one dependent and $6,000 for those with two or more dependents. The credit can be claimed when filing state taxes starting in 2023.

Meanwhile, this temporary boost to the state’s Property Tax/Rent Rebate Program will provide eligible Pennsylvanians with rebates from $650 to $975. The program is designed for Pennsylvanians 65 or older, widowed people over 49, and adult people with disabilities. Homeowners with annual incomes under $35,000 are eligible, along with renters earning annual incomes under $15,000.

Read more about Pa.’s child care and property tax credits in Pittsburgh Post-Gazette.

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