Pennsylvania House Passes Bill Offering Tax Credits to Businesses Covering Employee Child Care

Pennsylvania Sate Rep. Morgan Cephas with Pennsylvania State Rep. Liz Hanbig (composite image)

The Pennsylvania House of Representatives approved legislation that would provide tax credits to businesses that cover childcare costs for employees, with employers able to offset up to 30 percent of the costs.

HB 1958, also known as Incentivizing Employer Contributions to Employee Childcare, passed the Pennsylvania House last Wednesday with 155 votes in favor and 47 against.

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Childcare Costs Rising Even Faster than Sky-High Inflation, Report Reveals

The cost Americans are paying to provide childcare for their kids has risen dramatically since 2019, outpacing inflation overall, which has also risen substantially, according to the Bank of America (BofA) Institute.

The average childcare payment has risen by 32% since 2019 to $700 a month as of September, affecting middle- and upper-income households the most, according to data compiled by the BofA Institute. In that same time period, general inflation, as measured by the Consumer Price Index, rose 20% following a highly inflationary period since President Joe Biden took office in 2021, according to Axios.

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State Budget Makers Approve $194 Million for Childcare in Wisconsin

three kids holding hands

Republican lawmakers and Gov. Tony Evers are, perhaps surprisingly, on the same page when it comes to spending more money on childcare in Wisconsin.

The state’s budget-writing panel, the Joint Finance Committee, on Wednesday unanimously approved a plan to spend $194 million in federal funds to support childcare across the state.

“$194 million is a lot of money,” Rep Amy Loudenbeck, R-Clinton, told lawmakers. “This is our job as a committee and members of the legislature to have a voice in how these programs are supported or created or expanded. Or in some cases not created and not expanded.”

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