Shapiro touts expansion of Child and Dependent Care Tax Credit

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PITTSTON, LUZERNE COUNTY (WBRE/WYOU) — Governor Josh Shapiro joined community and legislative leaders in Luzerne County Thursday highlighting efforts to cut costs for Pennsylvania families.

Governor Shapiro says a lack of affordable childcare impacts children, their parents and the economy. That’s why he signed into law an expansion of the child and dependent care tax credit for more than 200,000 Pennsylvania families.

“This is going to be tremendous help for everyone,” said Nicole Vu of Swoyersville.

Vu is a proud working parent of two children. She knows first-hand how expensive childcare can be, and she even considered quitting her job to make sure her kids were well taken care of.

“Even though we have two working parents in our home, it’s still very tough to make ends meet,” Vu explained.

Last year, the average cost of childcare in the state was between $9,000 to $13,000, consuming around 15% of the median family’s annual income. Under previous law, Pennsylvania would match only 30% of the federal child and dependent care tax credit.

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“It really does cause a strain,” Vu added.

Thanks to new legislation signed into law by Governor Shapiro in December, the state credit will now match 100% of the federal credit, helping families offset more of the burden of raising children in the commonwealth.

“This doesn’t price people out of the market. Nearly every Pennsylvanian who pays for childcare is going to qualify for relief. That’s a big deal,” Governor Shapiro explained.

Under the new law, Governor Shapiro says families could see up to a 233% increase in their tax credit from last year.

“When families can send their kids to safe, affordable, wonderful childcare like the one here at the Y, they can go back to work, or they can expand their hours at work, businesses don’t lose out on great employees and kids get early learning opportunities that help set them up for success,” Governor Shapiro continued.

The state tax credit expansion received bipartisan support from the House and the Senate.

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