PA HB1534

Creates the Pennsylvania Child and Dependent Care Enhancement Tax Credit Program allowing resident individuals who claim the federal child and dependent care tax credit (IRC Section 21) to claim a state tax credit equal to 30% for taxable year 2022 and 100% for taxable years 2023 and thereafter

Maximum qualifying expenses capped at $3,000 for one qualifying individual or $6,000 for two or more qualifying individuals, multiplied by the applicable federal percentage based on income

Establishes an alternate credit starting in taxable year 2025 for taxpayers who did not claim the federal credit but participated in an employer dependent care assistance program (IRC Section 129), with the same expense caps and percentage calculations

Tax credit is refundable if it exceeds the taxpayer's liability, but cannot be carried over, carried back, sold, assigned, or transferred

Repeals Article XVI-W of the Fiscal Code and moves the program into the Tax Reform Code of 1971; requires the Department of Revenue to submit annual reports to the General Assembly on credit utilization