HB 1450 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Homebuyer Rebate Program.

PRIOR PRINTER'S NO.

1681 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

27131450 THE2025 GENERALINTRODUCED ASSEMBLYBY OFDAVIDSON, PENNSYLVANIAKUTZ, HOUSEKHAN, BILLGUZMAN, SessionWAXMAN, GIRAL, FREYTIZ, HOWARD, BRENNAN, BOYD, MADDEN, MALAGARI, NEILSON, CIRESI, DEASY, CERRATO, GILLEN, FLEMING AND SCHLOSSBERG, MAY 12, 2025 REFERRED TO COMMITTEE ON FINANCE, MAY 12, 2025 AN ACT Amending the act of No.March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon;

1450 2025 INTRODUCED BY DAVIDSON, KUTZ, KHAN, GUZMAN, WAXMAN, GIRAL, McNEILL, KENYATTA, OTTEN, SANCHEZ, HILL-EVANS, CEPEDA- FREYTIZ, HOWARD, BRENNAN, BOYD, MADDEN, MALAGARI, NEILSON, CIRESI, DEASY, CERRATO, GILLEN, FLEMING, SCHLOSSBERG AND BELLMON, MAY 12, 2025 AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, DECEMBER 17, 2025 AN ACT Ameact relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon;

conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities;

prescribing crimes, offenses and penalties," in realty transfer tax, further providing for <-- transfer of tax;

and <-- establishing the Homebuyer Rebate Program Fund.

Section 1102-C.6 of the act of March 4, 1971 <-- (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended by adding a subsection to read:

SECTION 1.

THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS <-- THE TAX REFORM CODE OF 1971, IS AMENDED BY ADDING AN ARTICLE TO READ:

"DEPARTMENT.""Domicile." THEAs DEPARTMENTdefined OFin REVENUEsection OF501 THEof COMMONWEALTH.the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act.

<--"Fund." "Domicile."The AsHomebuyer definedRebate inProgram sectionFund 501established ofunder thesection act1905-L. of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act.

"Fund." The Homebuyer Rebate Program Fund established under <-- section 1905-L.

(ii) The dwelling is a unit in a cooperative as the 20250HB1450PN2713 - 2 - term is defined in 68 Pa.C.S.

"Qualified homebuyer." An individual who meets all of the 20250HB1450PN1681 - 2 - following:

<-- (i) Previously purchased a home within this Commonwealth.

(1)(2) HASIntends NOTto PREVIOUSLYpurchase PURCHASEDthe Ahome HOME.for use as a homestead.

<-- (2) Intends to purchase the home for use as a homestead.

(3) IF MARRIED, HAS A SPOUSE WHO HAS NOT COLLECTED A <-- REBATE UNDER SECTION 1904-L.

The Homebuyer Rebate Program is established within the Department of RevenueRevenue. DEPARTMENT.

<-- Section 1903-L.

(a) Filing.--Beginning January 1, 2026, a qualified homebuyer may file a claim with the department for a rebate under this section ARTICLE on a form developed by the <-- department.

20250HB1450PN2713 - 3 - (b) Exception.--A claim filed after the June 30 deadline until December 31 of a calendar year shall be accepted by the Secretary of Revenue if money is available to pay the benefits to the late-filing claimant.

(1) The size and nature of the homestead being 20250HB1450PN1681 - 3 - purchased.

(e) Approval of claim.--If the department determines that <-- the claimant meets the definition of a qualified homebuyer and has paid the claimant's tax liability, the department shall approve the claim and shall, as soon as practicable, make payment from the fund for the approved claim.

(E) APPROVAL OF CLAIM.-- <-- (1) IF THE DEPARTMENT DETERMINES THAT THE CLAIMANT MEETS 20250HB1450PN2713 - 4 - THE DEFINITION OF A QUALIFIED HOMEBUYER AND HAS PAID THE CLAIMANT'S TAX LIABILITY, THE DEPARTMENT SHALL APPROVE THE CLAIM AND SHALL, AS SOON AS PRACTICABLE, MAKE PAYMENT FOR THE APPROVED CLAIM.

(2) THE APPROVAL OF CLAIMS SHALL BE MADE ON A FIRST- COME, FIRST-SERVED BASIS.

(3) THE TOTAL AMOUNT OF CREDITS APPROVED SHALL NOT EXCEED THE AMOUNT SPECIFIED UNDER SECTION 1905-L.

(A)A ELIGIBILITY.--A qualified homebuyer whose claim has been <-- approved under this section ARTICLE is eligible for a rebate of <-- $2,500.

<-- (a) Establishment.--The Homebuyer Rebate Program Fund is established in the State Treasury.

(c) Use of money.--Money from the fund shall be used to pay 20250HB1450PN1681 - 4 - claims under this article.

(B)Section REFUND.--IF1906-L. A QUALIFIED HOMEBUYER WHOSE CLAIM HAS BEEN <-- APPROVED UNDER THIS ARTICLE SELLS THE HOMESTEAD WITHIN FIVE YEARS OF RECEIVING THE REBATE UNDER THIS ARTICLE, THE CLAIMANT SHALL REFUND TO THE DEPARTMENT THE REBATE ON A PRO RATA BASIS.

SECTION 1905-L.

ALLOCATION.

(A) AVAILABILITY OF MONEY.--TEN PERCENT OF THE TAX COLLECTED UNDER ARTICLE XI-C SHALL BE MADE AVAILABLE ON AN ANNUAL BASIS TO CARRY OUT THE PURPOSES OF THIS ARTICLE.

(B) PROCEDURE.--UPON REQUEST OF THE DEPARTMENT, THE STATE TREASURER SHALL TRANSFER MONEY IN ACCORDANCE WITH SUBSECTION (A).

20250HB1450PN2713 - 5 - Section 1906-L.

<-- (a) Right to file.--A claimant whose claim is either denied, corrected or otherwise adversely affected by the department may file with the department a petition for redetermination on forms supplied by the department within 90 days after the date of mailing of written notice by the department of the action.

(d) Hearings.--The department shall hold hearings as may be necessary for the purpose of redetermination and each claimant who has duly filed a petition for redetermination shall be 20250HB1450PN1681 - 5 - notified by the department of the time when and the place where 20250HB1450PN2713 - 6 - the hearing for the claimant's case will be held.

The petition shall be supported 20250HB1450PN1681 - 6 - by affidavit that the facts set forth therein are correct and 20250HB1450PN2713 - 7 - true.