An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in employer child care contribution tax credit, further providing for definitions and for employer child care contribution tax credit.

PRINTER'S NO. 1666
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1310
Session of
2026
INTRODUCED BY MALONE, HUGHES, COSTA, FONTANA, TARTAGLIONE, KANE,
CAPPELLETTI AND KEARNEY, MAY 1, 2026
REFERRED TO FINANCE, MAY 1, 2026
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in employer child care contribution tax credit,
further providing for definitions and for employer child care
contribution tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "aggregate contribution" in
section 1902-K of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971, added July 11, 2024 (P.L.674,
No.56), is amended to read:
Section 1902-K. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Aggregate contribution." [The]
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(1) For taxable years ending before January 1, 2026, the
aggregate contribution that a qualified taxpayer makes to all
employees during the taxable year for which the qualified
taxpayer seeks the employer child care contribution tax
credit established under this article, provided that only the
first $500 in contributions per employee shall count toward
the aggregate contribution.
(2) For taxable years beginning after December 31, 2025,
and for each taxable year thereafter, the aggregate
contribution that a qualified taxpayer makes to all employees
during the taxable year for which the qualified taxpayer
seeks the employer child care contribution tax credit
established under this article, provided that only the first
$10,000 in contributions per employee shall count toward the
aggregate contribution.
* * *
Section 2. Section 1903-K(c) of the act, added July 11, 2024
(P.L.674, No.56), is amended and the section is amended by
adding subsections to read:
Section 1903-K. Employer child care contribution tax credit.
* * *
(c) Amount of tax credit.--[The]
(1) For taxable years ending before January 1, 2026, the
amount of the tax credit under subsection (a) shall be equal
to 30% of the aggregate contribution made to employees during
the tax year.
(2) For taxable years beginning after December 31, 2025,
the amount of the tax credit under subsection (a) shall be
equal to 100% of the aggregate contribution made to employees
during the tax year.
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(d) Cap.--In no case shall the aggregate amount of tax
credits awarded in any fiscal year under this article exceed
$10,000,000.
(e) Proration.--If the total amount of otherwise approvable
tax credits applied for by all qualified taxpayers exceeds the
amount under subsection (d), the tax credit to be received by
each qualified taxpayer shall be the product of the amount under
subsection (d) multiplied by the quotient of the tax credits
otherwise approvable for the qualified taxpayer divided by the
total of all tax credits otherwise approvable for all qualified
taxpayers.
Section 3. This act shall take effect immediately.
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