General Assembly Passes Tax Relief in Latest Budget

(HARRISBURG) – The Pennsylvania General Assembly has included two important tax relief provisions in its recently enacted Fiscal Year 2022-23 budget, according to Senator John R. Gordner (R-27). 

One provision, permanently included in the tax code, is the creation of the Child and Dependent Care Enhancement Program.  This is modeled after the federal Child Tax Credit and would return up to 30% of childcare-related expenses claimed on the filers federal tax return. 

Eligible filers would be those people with one or more dependents that fall under certain income limits.  For those with one dependent, a maximum of $3,000 can be claimed.  That amount is doubled for those with two or more dependents.  The percentage of expenses that can be claimed will be based on income level.  The credit can be applied starting with state tax filings in 2023.

“This new childcare tax credit was an essential provision in our latest budget,” said Senator Gordner.  “I am pleased we were able to implement this program to lessen the burden on many taxpayers by giving them a tax credit for childcare expenses.”

The second provision in a one-year expansion of the Property Tax and Rent Rebate program.  Under the current program, renters and homeowners that meet the criteria are eligible for payments of $650 on the low end and up to $975.  This infusion of $140 million in federal stimulus money will allow those in the program to receive an additional 70% rebate for one year only.  If an individual received the full $975 from the program last year, they would receive an additional $682.50. 

Eligible individuals include those that are 65 years of age and older, widows and widowers aged 50 and older and those with a disability aged 18 and older.  Income requirements also apply.  Homeowners must make $35,000 or less and renters must make $15,000 or less to qualify for this program.

“The Property Tax and Rent Rebate Program has been successful in assisting our most vulnerable population by providing them with a rebate for certain property tax or home rental expenses,” added Senator Gordner.  “I am pleased that my colleagues and I were able to utilize federal funds to provide an additional level of relief for these individuals, especially in this time of steadily increasing living expenses.”

 

CONTACT:  Mike Stephens mstephens@pasen.gov