PRINTER'S NO. 3268
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2267
Session of
2020
INTRODUCED BY CEPHAS, A. DAVIS, HARKINS, SOLOMON, FREEMAN,
ULLMAN, SCHLOSSBERG, MURT, KINSEY, KOSIEROWSKI, BURGOS,
STURLA, ZABEL, YOUNGBLOOD, HANBIDGE, KENYATTA, HILL-EVANS,
McCLINTON, DAWKINS, BULLOCK AND ROEBUCK, FEBRUARY 4, 2020
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 4, 2020
AN ACT
Providing for child care tax deferment.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Childcare
Advance Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
Section 3. Deferred tax liability.
(a) General rule.--A taxpayer who, in a taxable year, has
employment-related expenses for child care for a dependent under
five years of age may defer payment of the taxpayer's income tax
liability for that taxable year by the amount of those expenses
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but not to exceed $2,000.
(b) Deferred tax liability.--
(1) Except as provided under paragraph (2), a taxpayer
who defers tax liability under subsection (a) shall be liable
once the taxpayer is no longer taking the deferral for the
full amount previously deferred divided into equal payments
over 10 years.
(2) In any future years in which the taxpayer takes the
deferral, the taxpayer is liable only for one-tenth of each
deferral taken five or more years prior until each of those
deferrals is repaid.
(3) A taxpayer shall not be liable for amounts
previously repaid.
(4) Repayment shall be made without interest.
(c) Notice.--At the end of each tax year, the department
shall notify each taxpayer who has deferred tax liability under
subsection (a) of the total amount of the deferred liability,
the tax year in which repayment shall begin and an estimate of
the amount for which the taxpayer shall be liable each year once
eligibility expires.
(d) Repayment.--Nothing in this section may prevent a
taxpayer from repaying accumulated liability earlier than the
schedule under subsection (b) or taking less than the total
amount allowable under subsection (a) in any tax year.
(e) Tax reciprocity.--A taxpayer that moves to a
jurisdiction that does not maintain tax reciprocity with this
Commonwealth shall be liable for the entire amount of deferred
tax liability for the tax year in which the change of residence
occurs and shall be directed to repay the liability through a
payment plan approved by the department.
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(f) Repayment.--The department shall provide for the
repayment of deferrals under this section to be made through
payroll withholding and shall address repayment in cases of
divorce.
Section 4. Effective date.
This act shall take effect in 60 days.
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