HB 334 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for Pennsylvania Individual Recruitment and Retention Tax Credit.

Summary

Tax Credit for New Nurses, Teachers, and Police Officers

Bill Text

• Printer's No. 0289 View text Current

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The bill introduces a new tax credit for certain individuals to incentivize employment in specific professional fields in Pennsylvania.

• Section 1701-A.1

  (16.2) Article XIX-L.

  Adds a reference to the new Pennsylvania Individual Recruitment and Retention Tax Credit to the definition of a tax credit.

• ARTICLE XIX-L PENNSYLVANIA INDIVIDUAL RECRUITMENT AND RETENTION TAX CREDIT

  Establishes a new article for the Pennsylvania Individual Recruitment and Retention Tax Credit.

• Section 1901-L. Scope of article. This article relates to the Pennsylvania Individual Recruitment and Retention Tax Credit.

  Defines the scope of the new tax credit article.

• Section 1902-L. Definitions.

  Introduces definitions pertinent to the new tax credit, including terms like 'qualifying taxpayer' and 'tax credit.'

• Section 1903-L. Credit for attraction and retention of needed professionals. (a) Tax credit.--For taxable years beginning after December 31, 2024, a qualifying taxpayer may claim a tax credit, to be known as the Pennsylvania Individual Recruitment and Retention Tax Credit, not to exceed $2,500 against the taxpayer's tax liability for wages earned as a recently certified professional.

  Creates a specific tax credit for qualifying individuals who are newly certified professionals, capped at $2,500.

• (b) Claim of tax credit.--A taxpayer must claim a tax credit on a return filed under section 330.

  Establishes the filing process for claiming the new tax credit.

• (c) Adequate proof of qualifications.--A taxpayer must provide the department with proof that the taxpayer meets the requirements of a qualified taxpayer.

  Mandates that taxpayers show proof of their qualifications to claim the credit.

• (d) Applicability of tax credit.--The tax credit shall be considered a payment of estimated tax made under Part VIII of Article III.

  Clarifies the tax treatment of the new credit as an estimated tax payment.

• (e) Duration of tax credit.--A taxpayer may claim the tax credit for the year in which the taxpayer first becomes a qualified taxpayer and the next two succeeding tax years, as long as the taxpayer remains employed in the field in which the individual is certified.

  Defines the eligibility period for the tax credit, which lasts for three years for qualifying individuals.

• Section 1904-L. Prohibitions. A taxpayer may not carry over, carry back, sell, assign or transfer a tax credit.

  Sets restrictions on the handling of the tax credit, preventing its transferability.

• Section 1905-L. Departmental duties. The department shall publish guidelines and may promulgate regulations necessary for the implementation and administration of this article.

  Assigns responsibilities to the Department of Revenue for managing the new tax credit.

• Section 1906-L. Applicability. The tax credit shall apply to individuals who become qualifying taxpayers after December 31, 2024, and prior to January 1, 2028.

  Specifies the timeframe during which individuals can qualify for the new tax credit.

• Section 1907-L. Expiration. This article shall expire December 31, 2030.

  Establishes an expiration date for the tax credit article, limiting its duration.

Action History

1. January 27, 2025

   Referred to FINANCE, Jan. 27, 2025

Sponsors

• Liz Hanbidge · Cosponsor
• Tarik Khan · Cosponsor
• Tarah Probst · Cosponsor
• Malcolm Kenyatta · Cosponsor
• Chris Pielli · Cosponsor
• Benjamin V. Sanchez · Cosponsor
• Carol Hill-Evans · Cosponsor
• Jose Giral · Cosponsor
• David M. Delloso · Cosponsor
• Michael H. Schlossberg · Cosponsor
• Johanny Cepeda-Freytiz · Cosponsor
• Joe Ciresi · Cosponsor
• Sean Dougherty · Cosponsor
• Steven R. Malagari · Cosponsor
• Jennifer O'Mara · Cosponsor
• Daniel J. Deasy · Cosponsor
• Mandy Steele · Cosponsor
• Melissa Cerrato · Cosponsor
• G. Roni Green · Cosponsor
• Brian Munroe · Primary
• Danilo Burgos · Cosponsor
• Kyle Donahue · Cosponsor

Subjects