HomeTop StoriesGovernor Josh Shapiro touts expansion of child care tax credit in Reading

Governor Josh Shapiro touts expansion of child care tax credit in Reading

All Jennifer Stepp needed was a chance and a little help.

The opportunity came in 2004, when she got a job as a teacher at Opportunity House’s Second Street Learning Center. For the 21-year-old single mother of two, it was a godsend.

Not only was she able to earn a salary, but she was also able to enroll her children in the program, eliminating the need to find childcare herself.

“At first I wasn’t sure how I was going to pay for childcare, but the staff helped me through it,” she said. “I was able to get financing to pay for it.”

A few years later, Stepp needed help.

She had a new baby and was in an abusive relationship, and ended up staying with her father, sleeping on a couch while her three children shared a futon.

“Another bad situation,” she said. “I needed help, and help is what I got.”

She was able to take advantage of Opportunity House’s housing program, which provided her with a place to sleep.

“So not only did I have a safe, happy place for my children to be cared for while I worked, I now had a safe, happy home for them,” she said.

Stepp embraced the opportunity and help she had been given, determined to use it to create a better future for her family. She went back to school and earned a teaching degree, becoming the first person in her family to graduate from college.

And now she is the director of the learning center.

“I could never have done it without the help and guidance from Opportunity House over the years,” she said. “This isn’t just my story — this is the story of every single parent, every low-income household that we serve here at Opportunity House.”

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Jennifer Stepp, a teacher at Second Street Learning Center in Reading, speaks about the importance of the facility during a visit by Pennsylvania Gov. Josh Shapiro on Wednesday, Sept. 25, 2024. He was there to tout tax cuts included in the latest state budget. (Courtesy of Commonwealth Media Services)

Stepp told her story Wednesday at the Second Street Learning Center during a special visit from Gov. Josh Shapiro, who stopped by to talk about how state leaders are helping to ensure other people have the same opportunities and assistance that helped Stepp on her journey to success.

According to Shapiro, a lack of affordable child care is often a major obstacle to the economic success of parents and the state economy as a whole.

“Here in Pennsylvania, our economy is literally losing $3.5 billion a year in lost revenue, lost productivity, lost tax revenue for people who can’t work because they don’t have access to child care,” he said.

That’s why he signed legislation that will make affordable child care more accessible.

The latest state budget includes a significant expansion of the child care and dependent care tax deduction, helping to reduce costs for working families in Pennsylvania.

The tax credit offers up to $1,050 for one child 12 or younger, or $2,100 for two or more children. That’s a big increase from 2022, when a parent could get just $315 for one child and $630 for two or more.

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The budget also includes a tax credit for employer childcare contributions, which encourages businesses to contribute to the childcare costs of their employees. Employers can claim a tax credit for up to 30% of their total contributions to eligible childcare costs, up to a maximum of $500 per employee.

“These tax breaks make a huge difference, and that money goes right back into the pockets of families across Pennsylvania,” he said.

Shapiro said Berks County lawmakers are at the forefront of efforts to improve access to affordable child care, saying they have a seat at the table on progress and are getting meaningful things done.

One of those lawmakers is state Sen. Judy Schwank. Child care and early childhood education have long been a top issue for the Ruscombmanor Township Democrat.

“This is my issue — it really is because I really believe that in order for us to thrive as a community, we need to make sure that the foundation of our economy and the well-being of our children is providing good care and education for our children,” she said.

“Every child in the state deserves a center like this, where they can learn, interact with other kids and build skills that will give them an advantage when they go to school.”

Pennsylvania Governor Josh Shapiro shakes hands with Senator Judy Schwank during a visit Wednesday, Sept. 25, 2024, to the Second Street Learning Center in Reading, where he met with children, staff and community leaders to hold a ceremonial bill signing for the recent tax cuts included in the latest bipartisan budget aimed at lowering costs for families and small businesses. (Courtesy of Commonwealth Media Services)

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Schwank said child care is a universal issue that affects families of all types in every corner of the state. And, she said, it’s an extremely important issue.

“Affordable, quality child care gives parents and caregivers the freedom they need to go about their day, be productive in the workforce, or pursue the further education or vocational training they need to increase their earning potential,” she said.

Representative Johanny Cepeda-Freytiz also spoke about the importance of affordable child care and praised the governor for his dedication to the issue.

“I’m just grateful to be in a position to work with the governor and my colleagues to make the necessary changes that will impact communities for years to come,” said the Reading Democrat.

Those tax breaks will indeed have a big impact on the community, said Modesto Fiume, president of Opportunity House.

Fiume said 95 percent of the children at the learning center come from low-income families who live paycheck to paycheck. He said the center offers them peace of mind knowing their children are being cared for in a facility that helps them grow emotionally, socially and developmentally.

“This legislation will have a huge impact on easing the burden on families across the Commonwealth,” he said.

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