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PRINTER'S NO. 3367
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2738
Session of
2022
INTRODUCED BY CEPHAS, FRANKEL, SANCHEZ, D. WILLIAMS, HANBIDGE,
LONGIETTI, FREEMAN, HILL-EVANS, MADDEN, A. BROWN, ISAACSON,
HOHENSTEIN, A. DAVIS, GUZMAN, SCHLOSSBERG, HOWARD, CIRESI,
O'MARA, KINSEY, McCLINTON, KIM, N. NELSON AND DALEY,
JULY 7, 2022
REFERRED TO COMMITTEE ON FINANCE, JULY 7, 2022
AN ACT
Providing for tax incentives for employers who provide child
day-care services for employees.
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 Employee
Child Day Care Tax Incentive 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.
"Employee." An individual who provides services to another
person in return for compensation. The term includes an
independent contractor.
"Employee child day care." Care for a preschool child of an
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employee during the working hours of the employee.
"Employer." A person who receives services from an
individual in return for compensation.
"Furnish employee child day care." To do any of the
following:
(1) Provide for employee child day care, regardless of
whether the care is provided on the premises of the employer.
(2) Reimburse an employee for any portion of the cost of
employee child day care.
Section 3. Tax credit.
(a) Eligibility.--An employer who furnishes employee child
day care is eligible for a tax credit under subsection (b) in
the amount of the employer's cost in furnishing employee child
day care.
(b) Use.--An employer who is eligible under subsection (a)
may utilize the tax credit as follows:
(1) If the employer is an individual, the credit is
available for the individual against the tax imposed under
Article III of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971.
(2) If the employer is a partnership or unincorporated
association, the credit is available on a pro rata basis for
each partner or member against the tax imposed under Article
III of the Tax Reform Code of 1971.
(3) If the employer is a corporation, the credit is
available against the tax imposed under Article IV of the Tax
Reform Code of 1971.
Section 4. Department.
The department shall promulgate regulations to administer
this act.
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Section 5. Applicability.
This act shall apply to taxable years beginning after
December 31, 2020.
Section 6. Effective date.
This act shall take effect immediately.
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