Reading — July 12, 2024 — Sen. Judy Schwank (D-Berks) touted the budget passed by the General Assembly for the 2024-2025 fiscal year, which includes an employer child care contribution tax credit and key investments in economic development programs.
Senate Bill 654, the tax code, includes an employer child care contribution tax credit based on language in Schwank’s Senate Bill 252. For taxable years beginning after Dec. 31, 2024, employers can claim a tax credit for contributions made toward an employee’s child care expenses.
“This tax credit acknowledges that both parents and employers have a vested interest in making child care more affordable and accessible in Pennsylvania,” said Schwank, who co-chairs the Early Childhood Education Caucus. “The bipartisan support of this proposal is what allowed it to be included in the tax code, as we’ve really built consensus around the need for quality child care.”
The tax code also includes increases to economic development tools that will boost redevelopment efforts in Reading and Berks County. This includes an increase to the cap on Historic Preservation Incentive Tax Credits from $5 million to $20 million and increases the cap on Neighborhood Assistance Tax Credits from $36 million to $72 million.
The budget’s general appropriations bill includes $20 million for the new Main Street Matters program, an initiative built off the legacy of the Keystone Communities program that provides resources to revitalize neighborhoods, and $500 million for PA SITES, a new grant program to help develop competitive sites for businesses to relocate or expand within the commonwealth.
“Gov. Shapiro has made competitiveness and investing in main streets across Pennsylvania a hallmark of his economic vision, and he’s delivered in this budget with PA SITES and Main Street Matters,” said Schwank. “In a city like Reading, with an abundance of beautiful, historic buildings, a program like the Historic Preservation Incentive Tax Credit can really be put to good use. The Neighborhood Assistance Tax Credits is a tool that has been very popular in Berks County, so across the board, I think there’s a lot we can be excited about.”
Additionally, the tax code makes changes to the City Revitalization Improvement Zone (CRIZ) program, opening the door for applications to be received for the first time since 2015. The City of Reading has expressed interest in securing a CRIZ. In anticipation of an opportunity to apply for a CRIZ, a CRIZ working group was established in November 2023 and has begun preparations.
“We have a tremendous opportunity to put together a strong application to secure a CRIZ that will help Reading reach its full economic potential,” Schwank said. “Thankfully, our working group has been laying the groundwork for an application, so we are prepared and have a plan.”
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