Dec. 15, 2023

HARRISBURG – The Fiscal Code bill signed into law this week by Gov. Josh Shapiro includes an enhancement of Pennsylvania’s Child and Dependent Care Tax Credit, an issue that Rep. Ryan Mackenzie (R-Lehigh) has been advocating for since the introduction of his legislation on this topic back in February. The Fiscal Code is budget-related legislation that directs how state funding is to be spent. 

“When I introduced my Pennsylvania Families Tax Relief bill package earlier this year, the intent was to provide a variety of budget options that would help working families deal with the high costs of everyday life,” said Mackenzie. “I am pleased that this proposal was included in the 2023-24 Fiscal Code and is now law.” 

Specifically, the new law increases the Child and Dependent Care Tax Credit to match the federal credit of up to $3,000 for one qualifying individual and $6,000 for two more qualifying individuals, beginning in tax year 2023. Mackenzie’s proposal shared the same end result with a phased-in approach over a three-year period.

Other bills in Mackenzie’s Pennsylvania Families Tax Relief package include:
• House Bill 160, which would provide several permanent exemptions from the Sales and Use Tax (SUT), including children’s and library books, toys, cribs and strollers, and youth sports equipment. 
House Bill 161, which would provide tax holidays to help reduce burdens when families are making improvements to their homes or getting ready to send their children back to school through temporary relief from the SUT. 
House Bill 162, which would provide a permanent exemption from the Gross Receipts Tax (GRT) levied on electric bills. 
House Bill 163, which would provide a permanent exemption from the SUT levied on pet food.
House Bill 164, which would provide a permanent exemption from the SUT and GRT levied on cell phone bills. 
House Bill 165, which would increase funding for the homestead/farmstead exclusion by redirecting all revenue generated from gaming that is designated for the General Fund to be used for the exclusion program. 
House Bill 166, which would reduce the Personal Income Tax (PIT) from 3.07% to 2.99% over a two-year period. 
House Bill 167, which would provide a permanent exclusion to volunteer firefighters and emergency medical services personnel from the SUT for protective equipment purchases.
House Bill 168, which would reduce the Inheritance Tax for direct descendants and siblings from the current 4.5% and 12% to align with the PIT. 

“I will continue to push for more tax relief for all Pennsylvanians in next year’s budget. People continue to struggle with the high cost of inflation that has been driven by the overspending in Washington, D.C. While we in Harrisburg didn’t create that mess, we can continue to help people offset those higher costs by lowering their tax burden,” added Mackenzie.

Representative Ryan Mackenzie
187th Legislative District
Pennsylvania House of Representatives

Media Contact: Andy Briggs
717-260-6474 /