SB 1310

                                                 PRINTER'S NO.    1666
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                   SENATE BILL
                   No. 1310
                                           Session of
                                             2026
INTRODUCED BY MALONE, HUGHES, COSTA, FONTANA, TARTAGLIONE, KANE,
   CAPPELLETTI AND KEARNEY, MAY 1, 2026
REFERRED TO FINANCE, MAY 1, 2026
                                  AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2    act relating to tax reform and State taxation by codifying
3    and enumerating certain subjects of taxation and imposing
4    taxes thereon; providing procedures for the payment,
5    collection, administration and enforcement thereof; providing
6    for tax credits in certain cases; conferring powers and
7    imposing duties upon the Department of Revenue, certain
8    employers, fiduciaries, individuals, persons, corporations
9    and other entities; prescribing crimes, offenses and
10    penalties," in employer child care contribution tax credit,
11    further providing for definitions and for employer child care
12    contribution tax credit.
13    The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15    Section 1.     The definition of "aggregate contribution" in
16 section 1902-K of the act of March 4, 1971 (P.L.6, No.2), known
17 as the Tax Reform Code of 1971, added July 11, 2024 (P.L.674,
18 No.56), is amended to read:
19 Section 1902-K.    Definitions.
20    The following words and phrases when used in this article
21 shall have the meanings given to them in this section unless the
22 context clearly indicates otherwise:
23    "Aggregate contribution."      [The]
1(1)   For taxable years ending before January 1, 2026, the
2    aggregate contribution that a qualified taxpayer makes to all
3    employees during the taxable year for which the qualified
4    taxpayer seeks the employer child care contribution tax
5    credit established under this article, provided that only the
6    first $500 in contributions per employee shall count toward
7    the aggregate contribution.
8(2)   For taxable years beginning after December 31, 2025,
9    and for each taxable year thereafter, the aggregate
10    contribution that a qualified taxpayer makes to all employees
11    during the taxable year for which the qualified taxpayer
12    seeks the employer child care contribution tax credit
13    established under this article, provided that only the first
14    $10,000 in contributions per employee shall count toward the
15    aggregate contribution.
16    * * *
17    Section 2.     Section 1903-K(c) of the act, added July 11, 2024
18 (P.L.674, No.56), is amended and the section is amended by
19 adding subsections to read:
20 Section 1903-K.    Employer child care contribution tax credit.
21    * * *
22    (c)   Amount of tax credit.--[The]
23(1)   For taxable years ending before January 1, 2026, the
24    amount of the tax credit under subsection (a) shall be equal
25    to 30% of the aggregate contribution made to employees during
26    the tax year.
27(2)   For taxable years beginning after December 31, 2025,
28    the amount of the tax credit under subsection (a) shall be
29    equal to 100% of the aggregate contribution made to employees
30    during the tax year.
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1    (d)   Cap.--In no case shall the aggregate amount of tax
2 credits awarded in any fiscal year under this article exceed
3 $10,000,000.
4    (e)   Proration.--If the total amount of otherwise approvable
5 tax credits applied for by all qualified taxpayers exceeds the
6 amount under subsection (d), the tax credit to be received by
7 each qualified taxpayer shall be the product of the amount under
8 subsection (d) multiplied by the quotient of the tax credits
9 otherwise approvable for the qualified taxpayer divided by the
10 total of all tax credits otherwise approvable for all qualified
11 taxpayers.
12    Section 3.   This act shall take effect immediately.
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