Legislation On Tax Deductions Toward Childcare Expenses Moving Forward
(Harrisburg, PA)A new bill that could help Pennsylvania families struggling with the high cost of childcare is making its way through the state House. The legislation proposes tax deductions for companies that help cover their employees' childcare expenses.
The House Finance Committee approved the measure with a vote of 20 to five. The bill's supporters believe that by helping to cover childcare costs, employers can attract and keep top workers. This is particularly important as the rising cost of childcare is preventing some parents from being able to work.
The bill, co-sponsored by Rep. Liz Hanbridge, proposes allowing employers to deduct up to 110% of childcare contributions. There are plans to amend this to a tax credit for care from regulated providers.
Laura Manion of the Chester County Chamber of Business and Industry and Dr. Lesley Spina of Kinder Academy highlighted the economic and social benefits of supporting childcare through the workplace. They emphasized the need for investment in early childhood education and addressed the challenges facing the childcare sector, such as staffing shortages and operational costs.
The legislation aims to improve childcare affordability and availability and also to bolster women’s participation in the workforce. However, experts like Diane Barber from the PA Child Care Association caution that the bill is just one part of a broader solution needed to address the systemic issues in childcare.
The issue of childcare availability and affordability became more prominent last fall when many pandemic-related funding measures ended. This proposed bill could be a significant step towards easing the burden of childcare costs for many families in Pennsylvania.