Harrisburg, Pa. − June 18, 2026 − To put more money back in working families’ pockets, Pennsylvania State Senators Maria Collett (D-12), Lindsey Williams (D-38), Christine Tartaglione (D-2) and Katie Muth (D-44) have introduced legislation to increase Pennsylvania’s Child and Dependent Care Enhancement Tax Credit, aligning the state credit with changes to the federal credit.
Beginning with the 2026 tax year, the federal Child and Dependent Care Tax Credit will increase to 50% (from 35%) of child and dependent care expenses paid. The maximum credit will be $1,500 (for one child/dependent), an increase of $450, or $3,000 (for two or more children/dependents), an increase of $900.
Under current state law, Pennsylvania does not automatically conform to changes made to the federal program. This legislation would ensure the state credit families receive will match the enhanced federal credit.
“Far too many families are struggling to make ends meet as the cost of everything from groceries to childcare continues to rise,” Collett said. “Our legislation will provide real relief for real Pennsylvanians, ensuring parents and caregivers get hundreds of dollars more in tax credits each year.”
In 2025, the Child and Dependent Care Enhancement Tax Credit delivered $139 million in tax relief to nearly 222,000 Pennsylvanians.
“Aligning state childcare tax relief with the federal program means that working families get more money back into their pockets while making taxes a little simpler,” said Williams. “Our working families, especially our working moms, already have a full to do list. I’m glad we can make this rebate a little more straightforward and accessible for those who need it most.”
“Families across Pennsylvania are going to work, raising children, and caring for loved ones, all while the cost of care continues to rise faster than their paychecks,” said Tartaglione. “Aligning Pennsylvania’s Child and Dependent Care Enhancement Tax Credit with the expanded federal credit is a common-sense way to put more money back into the pockets of working families and help make childcare and dependent care more affordable. At a time when so many Pennsylvanians are struggling to keep up with rising costs, we should be doing everything we can to support them.”
“As inflation and the cost of living continue to outpace the earnings of so many families across our Commonwealth, it is imperative that we enhance state programs and benefits like the Child and Dependent Care Enhancement,” Muth said. “As budget negotiations take place in Harrisburg, the General Assembly must prioritize initiatives to put money back into the pockets of Pennsylvania families.”