Pennsylvania residents could claim a credit for work-related care costs

A qualifying Pennsylvania resident who receives the federal child and dependent care credit may claim a state credit for related work expenses. The claimant must be a Pennsylvania resident subject to the state personal income tax and must receive the federal credit for qualifying care expenses. The credit is based on expenses claimed for the federal credit, subject to a $3,000 limit for one qualifying person or $6,000 for two or more, and a federal percentage that varies by tax year. The credit cannot be carried forward or back, sold, assigned, or transferred. The same expenses cannot support credits claimed by two taxpayers. The credit applies to tax years beginning after December 31, 2021. The bill sets different calculations for 2022, 2023 through 2026, and years beginning after 2026; residents claim it on a state tax return.