Tuesday, February 18, 2025, 5:32AM |  16°
MENU
Advertisement
The dome of the Pennsylvania state Capitol in Harrisburg, where lawmakers in the House passed a bill that would give tax credits to employers who help employees with child care.
1
MORE

Pa. House passes bill to give tax credits to companies that help pay for employees' child care

Matt Rourke/Associated Press

Pa. House passes bill to give tax credits to companies that help pay for employees' child care

HARRISBURG — A bill that would give tax credits to employers for helping employees with child care expenses passed in the House with bipartisan support and is headed to the Senate, as lawmakers aim to help families confronted by a staff-starved child care system.

“Our child care system in this Commonwealth is very fragile” and at risk of failing, Rep. Liz Hanbidge, D-Montgomery, and a prime sponsor, said on the House floor on Wednesday. Moments later, members voted 155-47 to approve the bill, with all Democrats and 53 Republicans in favor.

Employers would get a tax credit equal to 30% of the aggregate contribution they made to employees’ child care expenses during a tax year, with only the first $500 in contributions per employee counting toward the total used in the determination.

Advertisement

The bill now goes to the Republican-dominated Senate for consideration. A spokesperson for Gov. Josh Shapiro, Will Simons, said Mr. Shapiro “will continue to monitor this legislation.”

FILE - People walk towards a Target store in Clifton, N.J., on December 18, 2023. Retailers, including Walmart and Target, are stepping up discounting heading into the summer of 2024, as they hope to offer frustrated shoppers some relief from higher prices and entice them to open their wallets.
Anne D'innocenzio
Major retailers are offering summer deals to entice inflation-weary shoppers

Mr. Shapiro wants to cut costs for Pennsylvanians, Mr. Simons said, and that is why he signed a child care tax credit expansion last year that was the largest in state history.

The biggest single problem in Pennsylvania child care is a staffing shortage, according to Diane Barber, executive director of the Pennsylvania Child Care Association.

She said she supports the tax credit bill because it will help some families that pay for child care. “But it doesn’t help families that don’t have child care,” she said.

Advertisement

Because they cannot find employees, some child care centers have closed their most labor-intensive rooms: the ones for infants up to 12 months. Those rooms require a minimum of one staff member per four children, while pre-school rooms have a state-set minimum ratio of one-to-ten.

“So new mothers going back to work can’t find care,” Ms. Barber said.

She would like to see the Legislature approve another bill from Ms. Hanbidge that would set up a state fund that would help pay child care costs for eligible residents via a “public private partnership.” That bill is awaiting consideration in the House.

Among those who voted ‘no’ in the House on the tax credit bill was Rep. Eric Davanzo, R-Westmoreland. While he liked the concept, he noted the vote came about 40 days before the deadline for approval of a state budget.

The bill cleared the House Local Government Committee on Wednesday on a party-line vote, with the Democratic majority in favor. Previous iterations of the bill have received bipartisan support in years past, noted the measure’s sponsor, Rep. Robert Freeman, D-Northampton County, but have never made it the whole way to the governor’s desk.
Zack Hoopes
Bill aiding Pa. municipalities with lots of tax-exempt property passes House committee

“We don’t know what that budget looks like,” Mr. Davanzo said. Beyond that, he said, some employers said they did not believe the proposed tax credit was large enough.

“It was one of those bills that didn’t sit well,” Mr. Davanzo said.

Rep. Lou Schmitt, R-Blair, another ‘no’ vote, said there were unanswered questions about how the tax credit would be applied.

Democrats pointed to a study that found Pennsylvania loses an estimated $3.47 billion each year as a result of insufficient child care. A Democratic co-prime sponsor, Rep. Morgan Cephas of Philadelphia, said in a written statement the tax incentive would push employers to put child care assistance in their strategic plans, “creating a more stable work force.”

The bill may be steered to the Senate Finance Committee, where minority Chairman Nick Miller, D-Lehigh, favors the concept. In an interview, he cited staffing troubles in the industry and said the tax credit’s use by businesses would “make them more competitive against companies in other states.”

Mr. Miller said he thinks the bill will get support from both parties in the Senate.

Republican Sen. Pat Stefano of Fayette County, a co-chair of the informal Early Childhood Education Caucus, said family access to child care is crucial.

“However, we must remember that our child care providers are facing severe staffing shortages, leaving them unable to adequately meet the demands of our families and our work force,” Mr. Stefano said. “Making child care affordable is essential, but it won’t necessarily eliminate years-long waitlists and inaccessibility.”

Ford Turner: fturner@post-gazette.com

First Published: May 27, 2024, 9:30 a.m.
Updated: May 28, 2024, 5:51 p.m.

RELATED
Video gaming machines at Rivers Casino in Pittsburgh on Monday, June 8, 2020.
J.D. Prose
Pa. gaming makes more than a half-billion dollars in a record month
SHOW COMMENTS (15)  
Join the Conversation
Commenting policy | How to Report Abuse
If you would like your comment to be considered for a published letter to the editor, please send it to letters@post-gazette.com. Letters must be under 250 words and may be edited for length and clarity.
Partners
Advertisement
Sidequest on 44th in Lawrenceville on Dec. 27, 2024.
1
a&e
Canceled show finds ex-Misfits singer Michale Graves lashing out about being purged from Pittsburgh
The Federal Bureau of Investigation seal outside the headquarters in Washington, D.C.
2
opinion
Vanni Cappelli: The FBI purge could lead to another 9/11
Head coach Mike Tomlin and offensive coordinator Arthur Smith watch a receivers and defensive backs drill at Steelers Minicamp at the UPMC Rooney Sports Complex Thursday, June 13, 2024.
3
sports
Gerry Dulac: Next season’s major decisions loom this week for Mike Tomlin, Steelers staff
A small public audience listened as Pittsburgh Public Schools released final recommendations for its facilities utilization plan during the education committee meeting at the PPS Administration Building in Oakland on Tuesday, Oct. 15, 2024.
4
news
Pittsburgh Public Schools considering reinstating virtual testimony following months of pushback
A protester waves a sign opposing Trump administration policies during a protest at the intersection of Murray and Forbes Avenues in Squirrel Hill Monday, Feb. 17, 2025.
5
news
Presidents Day protest in Pittsburgh takes aim at Trump policies
The dome of the Pennsylvania state Capitol in Harrisburg, where lawmakers in the House passed a bill that would give tax credits to employers who help employees with child care.  (Matt Rourke/Associated Press)
Matt Rourke/Associated Press
Advertisement
LATEST news
Advertisement
TOP
Email a Story