Pennsylvania 2023-2024 Regular Session

Pennsylvania House Bill HB1259

Introduced
5/24/23  
Refer
5/24/23  
Refer
6/6/23  
Report Pass
6/7/23  
Refer
6/7/23  
Report Pass
6/12/23  
Engrossed
6/12/23  

Caption

In personal income tax, further providing for classes of income; and, in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses.

Impact

The amendments will impact Pennsylvania's child and dependent care tax credits by introducing a tiered system that increases the percentage of eligible employment-related expenses that can be claimed. Starting at 30% for the taxable year 2022-2023 and enhancing to 50% by the year 2028, the bill aims to provide financial relief to families who incur such expenses. As a result, this could lead to increased accessibility to childcare services for working families, encouraging workforce participation.

Summary

House Bill 1259 proposes amendments to the existing Pennsylvania Tax Reform Code, specifically aimed at enhancing the Child and Dependent Care Enhancement Tax Credit Program. The bill allows taxpayers who receive a federal tax credit for child and dependent care expenses to claim a percentage tax credit against their tax liability. Under the new provisions, the tax credit amounts vary based on the number of qualifying individuals cared for and are calibrated to increase gradually over the coming years.

Sentiment

The sentiment surrounding HB 1259 appears to be predominantly positive among supporters, who argue that it addresses the pressing issue of childcare affordability for families in Pennsylvania. Advocates for the bill highlight its potential to foster economic growth by allowing more parents, especially mothers, to participate in the labor force. However, there is some contention regarding the financial implications on state revenues due to the increased credits, raising concerns among some legislators about budget sustainability.

Contention

Notable points of contention include concerns from fiscal conservatives regarding the long-term financial impact of these expanded tax credits on the state budget. Some lawmakers argue that while the intention behind supporting families is commendable, the potential revenue loss from increased tax credits could strain Pennsylvania's fiscal health. Additionally, discussions have highlighted the necessity for monitoring and understanding the effectiveness of the tax credits offered to ensure they serve their intended purpose without unintended economic consequences.

Companion Bills

No companion bills found.

Previously Filed As

PA HB169

In Pennsylvania child and dependent care enhancement tax credit program, further providing for credit for child and dependent care employment-related expenses.

PA HB1534

In tax credit and tax benefit administration, further providing for definitions; providing for Pennsylvania Child and Dependent Care Enhancement Tax Credit Program; and making a repeal.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB2452

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA SB1106

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA HB1126

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA SB662

In personal income tax, further providing for classes of income.

PA SB722

In personal income tax, further providing for classes of income.

PA SB655

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; in tax credit and tax benefit administration, further providing for definitions; and providing for personal health investment tax credit.

PA HB219

In personal income tax, further providing for definitions and for classes of income.

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