SB 755 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for the livable home tax credit.

Bill Text

• Printer's No. 0954 View text Current pdf

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This bill establishes a new livable home tax credit for taxpayers who purchase or modify their primary residences to improve accessibility.

• March 4, 1971 (P.L.6, No.2)

  ARTICLE XVIII-H LIVABLE HOME TAX CREDIT Section 1801-H. Scope of article. This article relates to the livable home tax credit. Section 1802-H. 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: "Credit." The livable home tax credit provided for under this article. "Department." The Department of Community and Economic Development of the Commonwealth. "Primary residence." A dwelling unit used as a place of primary habitation by an individual. "Secretary." The Secretary of Community and Economic Development of the Commonwealth. "Taxpayer." An individual subject to payment of taxes under Article III. Section 1803-H. Tax credit for taxable years beginning on or after January 1, 2020. (a) General rule.--For taxable years beginning on or after January 1, 2020, a taxpayer who purchases a primary residence or modifies the taxpayer's existing primary residence shall be allowed a credit against the tax imposed under section 302 for features or alterations that are designed to improve accessibility within or related to the residence and that meet eligibility guidelines established by the department. All accessibility features and alterations shall be subject to the requirements of the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act. (b) Limitation.--The credit shall be allowed for the taxable year in which the new primary residence is purchased or the alteration of the existing residence is completed. The credit allowed under this section may not exceed the sum of $5,000 for: (1) the addition or inclusion of accessibility features within or related to the primary residence; or (2) accessibility alterations within or related to an existing primary residence. (c) Application.--The credit shall require application by the taxpayer as provided in section 1804-H. (d) Prohibition.--No credit may be allowed under this section for purchase, construction or renovation of residential rental property. Section 1804-H. Procedure. (a) Application.--An eligible taxpayer shall apply for the credit by submitting an application to the department. The department shall issue a certification for an approved application to the taxpayer. The taxpayer shall attach the certification to the applicable income tax return. (b) Amount of tax credits.--The total amount of credits granted during a fiscal year may not exceed $1,000,000. (c) Application exceeding allocation.--If applications for the credits exceed the amount allocated by the secretary for the fiscal year, the department shall issue the credits pro rata based upon the amount of credits approved for each taxpayer and the amount of credits allocated by the secretary. Section 1805-H. Limitation. (a) General rule.--In no case may the amount of credits taken by a taxpayer under this article exceed the taxpayer's income tax liability for the taxable year. (b) Carryover.--If the amount of credit allowed for the taxable year in which the new primary residence is purchased or renovation of the existing primary residence is completed exceeds the taxpayer's income tax liability imposed for the taxable year, the amount that exceeds the tax liability may be carried over for the credit against the income taxes of the taxpayer in the next seven taxable years or until the total amount of the tax credit issued has been taken, whichever is sooner. Section 1806-H. Guidelines. The department shall establish guidelines necessary to implement this article.

  This section creates a new tax credit aimed at improving accessibility in primary residences.

Action History

1. June 12, 2019

   PN 0954 Referred to FINANCE

Sponsors

• Lisa Baker · Cosponsor
• Kim L. Ward · Cosponsor
• Jay Costa · Cosponsor
• Steven J. Santarsiero · Cosponsor
• Yudichak · Primary
• Wayne D. Fontana · Cosponsor
• Judith L. Schwank · Cosponsor
• Brewster · Cosponsor
• Browne · Cosponsor
• Blake · Cosponsor
• Christine M. Tartaglione · Cosponsor
• Art Haywood · Cosponsor
• Sabatina · Cosponsor
• Farnese · Cosponsor

Subjects