Gov. Shapiro Hails Childcare Tax Credit Law At YMCA In Berwyn

BERWYN, PA – In a daycare room filled with youngsters, parents, and lawmakers at the Upper Main Line YMCA in Berwyn Friday morning, Pennsylvania Governor Josh Shapiro described a new law intended to help parents with childcare costs.

The new law signed on Dec. 13 expands the tax credit to support both working families and employers. Under the law, a family with two kids in childcare who previously received $630 a year will now be eligible to receive $2,100 a year.

The average cost of childcare in Pennsylvania was between $9,000 to $13,000 in 2023, eating up over 15 percent of the median family’s annual income, the governor said.

“We have a get stuff done attitude,” Shapiro said during a press conference at the daycare. “We all know that child care is really expensive. Some parents spend 15 percent of their income on just one child.”

Shapiro said the new law will help 210,000 families.

Bertram Lawson, president & CEO of the YMCA of Greater Brandywine, said he is grateful to the governor and lawmakers for getting the legislation passed.

“The YMCA’s in Chester County supports 4,500 children and families in eight locations,” he said.

The Chester County Chamber of Business and Industry partnered with over 50 other business organizations, the state General Assembly, and Shapiro's administration to support the Child and Dependent Care Enhancement Tax Credit.

As a soon-to-be mom-of-two and chamber president representing 500 employers and thousands of employees in Chester County, Laura Manion said she is proud to celebrate tax credit expansion.

"The cost of care is becoming unattainable for families across every tax bracket, with the average cost of infant care in Chester County toppling over $17,000 annually," she said.

Lawmakers react

House leader Matt Bradford, a Montgomery County Democrat, said the massive expansion is an example of how parties work together.

“This is a great morning to be in Berwyn with all of these smiling faces,” he said.

State Rep. Melissa Shusterman and State Sen. Carolyn Comitta, both Chester County Democrats, said the tax credit is a big help for working parents.