PA House passes bill to help working families afford child care
Pennsylvania Capital Star: Child care may soon become less expensive for some of Pennsylvania’s working families.
The Pennsylvania House of Representatives passed a bill to provide tax credits for employers contributing to their employees’ child-care expenses. State Rep. Liz Hanbidge (D-Montgomery), who sponsored the bill with state Rep. Morgan Cephas (D-Philadelphia), emphasized the necessity of child care for a functional economy.
The proposed tax credit equals 30% of the total contributions an employer makes towards child care, up to $500 per employee, and would not be considered income on employees’ tax returns. Hanbidge criticized the low wages for child care workers in Pennsylvania, attributing a worker shortage to these insufficient wages. The mean hourly wage for Pennsylvania child care workers is $14.18, $1.24 less than the national average.
Hanbidge described the bill as a modest but important step in addressing the impact of inadequate child care on families and businesses. She cited a study by ReadyNation., noting the U.S. economy loses up to $122 billion annually due to insufficient child care. The U.S. Chamber of Commerce October report estimated Pennsylvania loses $591 million annually in tax revenue due to child care issues.
The bill passed without debate and now heads to the Republican-controlled Senate. Neighboring states West Virginia and New York already offer incentives for businesses assisting with child care costs, with similar proposals under consideration in Alabama, Connecticut, and Wisconsin.
The bill's passage follows the expansion of Pennsylvania’s child care tax credit, signed into law in December by Gov. Josh Shapiro, which also received bipartisan support.