An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for definitions and for credit for child and dependent care employment-related expenses.

PRINTER'S NO. 1825
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1382
Session of
2026
INTRODUCED BY COLLETT, L. WILLIAMS, TARTAGLIONE, MUTH, SAVAL,
CAPPELLETTI, HUGHES, PISCIOTTANO, KEARNEY, HAYWOOD, COMITTA,
KIM AND COSTA, JUNE 18, 2026
REFERRED TO FINANCE, JUNE 18, 2026
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection, for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
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every State depository and every debtor or creditor of the
Commonwealth," in Pennsylvania Child and Dependent Care
Enhancement Tax Credit Program, further providing for
definitions and for credit for child and dependent care
employment-related expenses.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "applicable percent" in section
1602-W of the act of April 9, 1929 (P.L.343, No.176), known as
The Fiscal Code, is amended to read:
Section 1602-W. 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:
"Applicable percent." [As]
(1) For taxable years ending before January 1, 2026, as
defined in section 21(a)(2) of the Internal Revenue Code of
1986 in effect for the taxable year beginning after December
31, 2021, and ending before January 1, 2023.
(2) For taxable years beginning after December 31, 2025,
as defined in section 21(a)(2) of the Internal Revenue Code
of 1986 in effect for the taxable year beginning after
December 31, 2025, and ending before January 1, 2027.
* * *
Section 2. Section 1603-W(c) of the act is amended and the
section is amended by adding a subsection to read:
Section 1603-W. Credit for child and dependent care employment-
related expenses.
* * *
(c) Amount of tax credit in subsequent taxable years ending
before January 1, 2026.--The amount of the tax credit under
subsection (a) for taxable years beginning after December 31,
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2022, and [for each taxable year thereafter] ending before
January 1, 2026, shall be equal to 100% of:
(1) the actual amount of employment-related expenses
incurred by the taxpayer and claimed for the Federal tax
credit under section 21 of the Internal Revenue Code of 1986
during the prior taxable year or the following, as
applicable, whichever is less:
(i) $3,000 for one qualifying individual with
respect to the taxpayer; or
(ii) $6,000 for two or more qualifying individuals
with respect to the taxpayer; multiplied by
(2) the applicable percent, with respect to the
taxpayer, in effect for the taxable year beginning after
December 31, 2021, and ending before January 1, 2023.
(c.1) Amount of tax credit for taxable years after December
31, 2025.--The amount of the tax credit under subsection (a) for
taxable years beginning after December 31, 2025, and for each
taxable year thereafter, shall be equal to 100% of:
(1) the actual amount of employment-related expenses
incurred by the taxpayer and claimed for the Federal tax
credit under section 21 of the Internal Revenue Code of 1986
during the prior taxable year or the following, as
applicable, whichever is less:
(i) $3,000 for one qualifying individual with
respect to the taxpayer; or
(ii) $6,000 for two or more qualifying individuals
with respect to the taxpayer; multiplied by
(2) the applicable percent, with respect to the
taxpayer, in effect for the taxable year beginning after
December 31, 2025, and ending before January 1, 2027.
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* * *
Section 3. This act shall take effect in 60 days.
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