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§ 1603-W. Credit for child and dependent care employment-related expenses

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal AffairsEffective: December 13, 2023

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 1. The Fiscal Code (Refs & Annos)
Article XVI-W. Pennsylvania Child and Dependent Care Enhancement Tax Credit Program (Refs & Annos)
Effective: December 13, 2023
72 P.S. § 1603-W
Formerly cited as 72 P.S. § 8903-I
§ 1603-W. Credit for child and dependent care employment-related expenses
Currentness
(a) Tax credit.--For taxable years beginning after December 31, 2021, a taxpayer who receives a credit under section 21 of the Internal Revenue Code of 19861 may claim a tax credit against the taxpayer's tax liability.
(b) Amount of tax credit.--The amount of the tax credit under subsection (a) for the taxable year beginning after December 31, 2021, and ending before January 1, 2023, shall be equal to 30% of:
(1) the actual amount of employment-related expenses incurred by the taxpayer and claimed for the Federal tax credit under section 21 of the Internal Revenue Code of 1986 during the prior taxable year or the following, as applicable, whichever is less:
(i) $3,000 for one qualifying individual with respect to the taxpayer; or
(ii) $6,000 for two or more qualifying individuals with respect to the taxpayer; multiplied by
(2) the applicable percent, with respect to the taxpayer, in effect for the taxable year beginning after December 31, 2021, and ending before January 1, 2023.
(c) Amount of tax credit in subsequent taxable years.--The amount of the tax credit under subsection (a) for taxable years beginning after December 31, 2022, and for each taxable year thereafter, shall be equal to 100% of:
(1) the actual amount of employment-related expenses incurred by the taxpayer and claimed for the Federal tax credit under section 21 of the Internal Revenue Code of 1986 during the prior taxable year or the following, as applicable, whichever is less:
(i) $3,000 for one qualifying individual with respect to the taxpayer; or
(ii) $6,000 for two or more qualifying individuals with respect to the taxpayer; multiplied by
(2) the applicable percent, with respect to the taxpayer, in effect for the taxable year beginning after December 31, 2021, and ending before January 1, 2023.
(d) Claim of tax credit.--A taxpayer shall claim a tax credit under this section on a return filed under section 330 of the Tax Reform Code of 1971.2
(e) Applicability of tax credit.--The tax credit under this section shall be applied against the taxpayer's tax liability. If the tax credit exceeds the taxpayer's tax liability, the department may issue a refund under the procedures specified in section 346 of the Tax Reform Code of 1971.3

Credits

1929, April 9, P.L. 343, No. 176, art. XVI-W, § 1603-W, added 2023, Dec. 13, P.L. 251, No. 34, § 8, imd. effective.

Footnotes

1
26 U.S.C.A. § 21.
2
72 P.S. § 7330.
3
72 P.S. § 7346.
72 P.S. § 1603-W, PA ST 72 P.S. § 1603-W
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document