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State Budget Deal Includes New Child Care Tax Credit

As part of Pennsylvania’s 2022-23 budget deal, the Child and Dependent Care Enhancement Program provides a permanent state tax credit of up to 30% of child care-related expenses. Income-eligible people will be able to claim up to $3,000 for one dependent, and $6,000 for two or more dependents. Final details on the percentage of expenses that can be credited based on income level have yet to be determined.

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