PHILADELPHIA (KYW Newsradio) — The high costs of early childhood education can be a struggle for some families. The inability to afford child care can hinder a child’s development and keep parents from jobs.
A new state tax credit aims to provide some relief to about 220,000 families.
Pennsylvania Department of Human Services Acting Secretary Meg Snead visited areas of Delaware County last week to tout the state’s $25 million Child and Dependent Care Enhancement Program.
The credit applies to families who already qualify for the federal child and dependent care tax credit, which was made available during the pandemic. Snead said that was “critically important in off-setting” necessary costs “in order to be back in the workforce.”
“Recognizing the value that that had in lifting people out of poverty, the governor thought that it was really important to prioritize that and make that available to families in the commonwealth,” Snead said.
The average tax credit, which is income-based, is estimated around $171.
Households earning above $43,000 could receive $180 if they have one child or $360 for two or more. Households earning less than $43,000 could get $315 for one child or $630 for two or more.
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The child care credit can be claimed when filing state taxes next spring.
“We encourage all parents to keep this opportunity in mind and take advantage of the credit come tax time,” said Snead. “It’s a great example of how when we work together among branches of government, we can help Pennsylvania’s families.
“It’s really critical resources that I think can help families offset the cost of much-needed things that are only getting more expensive in the face of inflation. This is a direct benefit that we can offer to people that will, in real-time, make a big difference.”
As part of her tour promoting the tax credit, Snead stopped by the Greater Philadelphia YMCA Rocky Run Branch in Media and read a book to a group of children, where about 80 children are enrolled in day care.
Shaun Elliott, president and CEO of the Greater Philadelphia YMCA, welcomed the tax credit but stressed that more is needed.
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“The child tax credit helps working families make child care a little more affordable, but at the end of the day, we need more help and more funding to make it easier on working families,” he said.
“The Y is the largest provider of licensed care in the commonwealth. We have desperately been trying to pay as much as we could pay to our childhood staff, but they deserve more. And yet, you have the parents that find it very expensive, so what is the solution? The solution is permanent funding.”