READING, Pa. - Pennsylvania Gov. Josh Shapiro used a stop in Reading Wednesday to highlight his administration's recent tax cuts.

"I've heard firsthand from Pennsylvanians that we have got to cut costs here in Pennsylvania," said Shapiro.

The governor says he's worked with the state legislature to include in the current bipartisan budget a number of tax credits to put money back in people's pockets.

"Governor Shapiro's tax cuts will create real opportunity for all Pennsylvanians, allowing businesses to offer more incentives to hire and retain workers, supporting parents with child care and the cost of higher education, and helping our seniors to stay in their homes," said state Rep. Johanny Cepeda-Freytiz (D-129th District.)

Shapiro was in Berks County to sign a ceremonial bill for the recent tax cuts. Officials say it's designed to help businesses grow while reducing child care costs for working families.  
 
"The average cost of child care in Pennsylvania was between 9,000 to 13,000 (dollars) in 2023, eating up over 15% of the median families annual income," said Cepeda-Freytiz.
 
According to the U.S. Chamber of Commerce, Pennsylvania's economy misses out on $3.47 billion every year in lost earnings because families can't access reliable, consistent child care.
 
"When you take Pennsylvanians out of the workforce, you reduce creativity and you reduce opportunity," Shapiro said.
 
That credit builds on the governor's expansion of the Child and Dependent Care Tax Credit. He signed that into law last year, and it delivers $132 million in tax credits to more than 200 thousand Pennsylvania families.
 
"A new law here in Pennsylvania has tripled the child care tax refundable state credit from $630 dollars when I took office, to $2,100 today," explained Shapiro.
 
"The maximum credit will be 1,050 (dollars) for one child or 2,100 for two or more children," said Cepeda-Freytiz.
 
A new law also includes incentives for employers who contribute to employees' child care costs.
 
The bill also helps seniors and those with disabilities by raising the maximum rebate from $650 to $1,000, and doubling the number of seniors who can qualify for it.   

"We finally delivered, after two decades, significant tax relief for seniors all across Pennsylvania," Shapiro said. "We nearly doubled the rebate that they get back on their property taxes or their rent, and we've nearly doubled the number of seniors that now qualify for this rebate."

Shapiro says cuts also help small businesses reduce their tax burden.

Gov. Shapiro visits Reading

"These tax credits make a huge difference," said Shapiro. "That's more money in the pockets of small businesses, more money in the pockets of families who are trying to afford child care. This is a big deal when it comes to cutting costs and stimulating growth in our economy and helping support our families."

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