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

Pennsylvania House Bill 2748 significantly expands the state's employer child care contribution tax credit for taxable years beginning after December 31, 2025. The bill increases the maximum amount of employee contributions that count toward the credit from $500 to $10,000 per employee and raises the credit rate from 30% to 100% of those qualifying contributions. To manage funding, the legislation caps total annual credits at $10 million and includes a proration mechanism that proportionally reduces individual claims if the total demand exceeds this limit.