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

This bill amends Pennsylvania's Tax Reform Code to allow businesses to claim a tax deduction for money they contribute toward their employees' child care costs. To qualify, employers must make payments to licensed child care centers, group homes, or family homes to help workers cover eligible care expenses while they work. The law permits a deduction equal to 110% of the total contributions made, with a separate provision that allows up to $5,000 of these costs to be excluded from the employer's taxable income. Employers claiming this benefit must file a specific form that details the names and contact information of participating employees and the child care providers they used. The changes apply to tax years starting after December 31, 2023, and will take effect 60 days after the bill is enacted.