Pennsylvania DOR Encourages Employers to Utilize Child Care, Education Contribution Tax Credits

The Pennsylvania Department of Revenue (DOR) published a news release encouraging employers to participate in the Employer Child Care Contribution Tax Credit and the 529 Savings Account Employer Matching Contribution Tax Credit, programs. The childcare credit allows employers to claim a tax credit equal to 30 percent of employees’ eligible childcare costs, up to $500 annually per employee, while the 529 matching contribution credit provides a tax credit equal to 25 percent of employer contributions to employees’ PA 529 or PA ABLE accounts, also capped at $500 per employee. Applications for the 2026 calendar year begin on Oct. 1, through ...