Summary: Senate Bill 1310 (2025-2026) – Tax Reform Code of 1971 — Employer Child Care Contribution Tax Credit
Overview
- Jurisdiction: Pennsylvania
- Sponsor: Senator James Malone (primary); multiple co-sponsors including Senators Hughes, Costa, Fontana, Tartaglione, Kane, Cappelletti, Kearney
- Status: Referred to the Senate Finance Committee (FINANCE) on May 1, 2026
- Short Title: Amending the Tax Reform Code of 1971, specifically the employer child care contribution tax credit, including definitions and the tax credit provisions
Purpose and Intent
The bill aims to update and modify Pennsylvania’s employer child care contribution tax credit program. The intent appears to be modernizing definitions and/or the framework of the credit to better align with current child care needs and employer practices, potentially increasing participation or effectiveness of the program.
Key Provisions (as indicated by title and memo)
Note: The full text is not included here, but the bill is described as “amending” the act to:
- Definitions: Refine or redefine terms used in the employer child care contribution tax credit program. This may clarify eligibility, calculation methods, or qualified contributions.
- Employer Child Care Contribution Tax Credit: Update the credit, which could involve:
- Eligibility criteria for employers (e.g., size, industry, location)
- Amount of the credit (percentage or fixed amount) or cap on total credits
- Calculation methodology for the credit based on employer contributions to child care programs
- Application and claiming processes (timelines, documentation, verification)
- Interaction with other state programs (e.g., interaction with tax liability, carryforward provisions, or recapture provisions)
Because the bill text is not fully provided, the precise numerical changes (e.g., credit rate, caps, thresholds) are not listed here. The accompanying memo “Updating the Employer Child Care Contribution Tax Credit Program” suggests an intent to modernize or enhance the program.
Who Would Be Affected
- Employers: Organizations eligible for the child care contribution tax credit, subject to updated definitions and credit rules.
- Child Care Providers: Potential beneficiaries indirectly, as employer contributions to child care programs or providers may drive eligible expenses and credits.
- Employees/Workforce: Families benefiting from enhanced employer-supported child care options, improving access to child care through employer programs.
- State Revenue/Tax Administration: Pennsylvania Department of Revenue would administer the credit, process applications, verify contributions, and apply any caps or carry-forward provisions.
Procedural and Timeline Aspects
- Introduction and Sponsorship: SB 1310 has a bipartisan sponsor slate.
- Current Stage: Referred to the Senate Finance Committee on May 1, 2026. No further committee actions or votes are listed.
- Next Steps: If advanced, the bill would move through the Finance Committee for hearings, potential amendments, and then be advanced to the full Senate for consideration. If enacted, it would go to the House of Representatives and follow the standard passage and signing process.
Potential Impacts to Look For (upon full text release)
- New or altered credit rate, caps, and eligible cost categories.
- Clarified definitions for terms such as “qualified contributions,” “employer-sponsored child care,” and “eligible employees.”
- Sunset clauses or renewal dates for the credit.
- Administrative requirements (documentation, affidavit, annual reporting).
- Interaction with federal child care tax provisions or other state programs.
If you’d like, I can update this summary after reviewing the full bill text (PN 1666) to provide precise figures, eligibility criteria, and a side-by-side of current law versus proposed changes.
