HB 426 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for phoenix employee and returnship tax credits; and imposing penalties.

Bill Text

• Printer's No. PN0393 View text Current pdf

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The bill introduces new tax credits for phoenix employees and returnships in Pennsylvania, promoting workforce reintegration and employment in high-demand occupations.

• The act of March 4, 1971 (P.L.6, No.2)

  ARTICLE XVII-M PHOENIX EMPLOYEE AND RETURNSHIP TAX CREDITS Section 1701-M. Definitions. The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Company." A corporation, partnership, limited liability company, limited liability partnership, business trust, affiliate, unincorporated joint venture or other business entity doing business in this Commonwealth. "Department." The Department of Revenue of the Commonwealth. "Educational program." A program offered by a secondary school or institution of higher education. The term does not include trainings or classes taken to maintain an occupational licensure or certification. "Occupation of high demand." An occupation that has a shortage of qualified individuals to fill working positions as determined by the department in consultation with the Department of Labor and Industry. "Phoenix employee." An employee or prospective employee who has not been enrolled in an educational program within the last three years and meets one of the following: (1) has been out of the workforce for two years; or (2) has been hired into a position that would increase the employee's earnings by at least 50% over the employee's previous company. "Phoenix employee tax credit." A phoenix employee tax credit issued under section 1703-M. "Returnship." A paid internship that reintroduces a phoenix employee into the workforce or an industry, with the intent of the company to hire the phoenix employee into a permanent, substantially similar position. "Returnship tax credit." A tax credit issued under section 1704-M. Section 1702-M. Eligibility. To be eligible to receive a phoenix employee tax credit or returnship tax credit under this article for occupations of high demand under this article, a company must demonstrate to the department:...

  This addition establishes a new framework for tax credits aimed at helping individuals reenter the workforce and filling high-demand jobs.

• The act of March 4, 1971 (P.L.6, No.2)

  Section 1703-M. Phoenix employee tax credit. (a) Maximum amount.--A company may claim a phoenix employee tax credit equal to two times the percentage of the State personal income tax, prior to deductions, imposed on a phoenix employee within the company. ...

  This section describes the specifics of the phoenix employee tax credit, including the maximum amount companies can claim.

• The act of March 4, 1971 (P.L.6, No.2)

  Section 1704-M. Returnship tax credit. (a) Duty of department.--The department shall establish standards for returnships that qualify for a returnship tax credit under this section. ...

  This section establishes a framework for a new returnship tax credit aimed at encouraging companies to offer internships to reintroduce employees into the workforce.

• The act of March 4, 1971 (P.L.6, No.2)

  Section 1705-M. Phoenix employee tax credit for occupations of high demand. (a) Occupations of high demand list.--The department shall consult with the Department of Labor and Industry and publish on the department's publicly accessible Internet website a list of occupations of high demand by January 1 of each year. ...

  This section mandates the publication of a list of high-demand occupations which will be linked to the eligibility for the new tax credit.

Action History

1. March 15, 2023

   Referred to Finance

Sponsors

• Kristine C. Howard · Primary
• Carol Hill-Evans · Cosponsor
• Maureen E. Madden · Cosponsor
• Dan K. Williams · Cosponsor
• Emily Kinkead · Cosponsor
• Scott Conklin · Cosponsor
• Elizabeth Fiedler · Cosponsor
• Rick Krajewski · Cosponsor
• David M. Delloso · Cosponsor
• Benjamin V. Sanchez · Cosponsor
• Stephen Kinsey · Cosponsor

Subjects