Shapiro celebrates child care tax credit during Chester County visit
Local lawmakers join governor to mark the event
While announcing a way to benefit kids, their families and businesses, Gov. Josh Shapiro kicked off the “GSD Tour” in Chester County.
More than a dozen elected officials, chamber leaders, YMCA staffers and especially kids, celebrated increased funding for childcare users, at the Upper Main Line YMCA, with the governor, Friday morning.
Shapiro smiled when he told the standing-roomonly crowd of 150 celebrants that GSD stands for “get stuff done” — every single day.
“It puts real money back in their pockets,” Shapiro said about the impact on families impacted by the Pennsylvania Child and Dependent Care Tax Credit.
More than 210,000 Pennsylvania families will benefit from a childcare tax cut.
According to a release issued by the governor’s office: “The average cost of childcare in Pennsylvania was between $9,000 to $13,000 in 2023, eating up over 15% of the median family’s annual income. According to the U.S. Chamber of Commerce, Pennsylvania’s economy loses $3.47 billion every year in lost earnings, productivity, and tax revenue because families can’t access reliable, consistent childcare.”
Previously, Pennsylvania only matched 30% of the federal Child and Dependent Care Tax Credit. Now, after this new bipartisan legislation was signed into law in December by Gov. Shapiro, the state credit will match 100% of the federal credit.
The tax credit more than tripled from $630 to $2,100 annually. Shapiro is the only governor with a divided legislature. He lauded both sides for reaching together across the aisle to triple the credit.
“This is a prime example of government working together,” he said about the bipartisan effort. “We’re helping families.
“The price of everything has increased and they need a little more help.”
State Rep. Matt Bradford, House leader, said that the push to increase the credit started 18 months ago.
“This is truly an example of the best in government,” Bradford said. “It’s a working family issue. “This is a big issue.” Bradford also said that the credit is pro-business. He noted that the challenge is to support the middle and working classes, through the bill he thanked Shapiro for steadfastly standing for.
“Government really responded,” he said. “This is a great morning to be here in Berwyn.”
Bertram Lawson, president and CEO of the YMCA
of Greater Brandywine said that eight Y’s and eight Y summer programs provide services to 65,000 children.
“This will allow more parents to return to work,” he said.
Laura Manion, president and CEO of Chester County Chamber of Business and Industry, tirelessly worked to increase the tax credit. She said that she brought a young child into the office for the first month at a new job when she couldn’t find childcare.
She said that 56% of parents are late to work, with
child care struggles, one quarter are reprimanded and 18% are fired or laid off.
“This is a huge victory for the employers as well,” Manion said.
State Sen. Carolyn Comitta talked about rising costs and a lack of options for parents. She said that the credit will enable more parents to go to work, attend school and pursue their dreams. She also said that childcare grows healthy, successful people.
State Rep. Melissa Shusterman and Rep. Tina Davis championed the tax
credit bill. Shusterman said she attended the YMCA as a child and said that the credit would cut the financial burden of raising a family. She referred to it as a lifeline.
“It took a coalition working hard… to push this through,” Shusterman said.
With pandemic-era federal aid to childcare providers ending on Sept. 30 and 3,000 childcare programs in danger of closing, Shusterman believes the credit will help address a looming childcare crisis.
Shapiro announced that all families will need to do to earn the credit is to file for the state tax credit on the federal income tax form.