SB 401 — 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 the Pennsylvania National Guard employer tax credit.

Summary

National Guard Employer Tax Credit

Bill Text

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This bill establishes a new tax credit for employers who hire or support members of the Pennsylvania National Guard.

• Section 1701-A.1

  (16.2) Article XIX-L.

  Adds a new category of tax credit based on Article XIX-L for employers of Pennsylvania National Guard members.

• The act is amended by adding an article

  ARTICLE XIX-L PENNSYLVANIA NATIONAL GUARD EMPLOYER TAX CREDIT

  Creates a new article specifically for the Pennsylvania National Guard employer tax credit.

• Section 1902-L

  Tax credit available.--A taxpayer is eligible for a tax credit as provided in subsection (b) against the tax imposed under Article III or IV, but shall not include any tax withheld by an employer from an employee under Article III, if: (1) the taxpayer hires an active member of the Pennsylvania National Guard; (2) an employee of the taxpayer enlists in the Pennsylvania National Guard; or (3) an employee of the taxpayer reenlists in the Pennsylvania National Guard.

  Establishes eligibility criteria for employers to claim a tax credit when hiring or supporting Pennsylvania National Guard members.

• Section 1902-L

  Maximum tax credit.--A taxpayer may claim a tax credit in the amount of $1,000 for each full-time employee who qualifies under subsection (a)(1), (2) or (3). A taxpayer may claim a tax credit under this section only once with respect to each qualified employee and may not claim a tax credit if a previous employer of the employee claimed a tax credit.

  Defines the maximum amount of tax credit available per eligible employee and restricts claims to avoid duplication.

• Section 1903-L

  Excess tax credit.--If a taxpayer cannot use the entire amount of the tax credit for the first taxable year in which the employer is eligible for the tax credit, the excess may be carried over to succeeding taxable years and used as a tax credit against the qualified tax liability of the taxpayer for those taxable years.

  Allows taxpayers to carry forward unused tax credits for up to three years.

• Section 1904-L

  The total amount of tax credits authorized by this article shall not exceed $5,000,000 in each fiscal year. If the tax credits exceed the $5,000,000 cap in a given year, the tax credits shall be allocated on a pro rata basis.

  Imposes an annual cap on the total amount of tax credits available under this article.

• Section 1905-L

  The department shall prepare any forms that may be necessary to claim a tax credit, may require proof of the claim for the tax credit and may adopt rules and promulgate regulations to administer the tax credit.

  Grants the Department of Revenue the authority to create necessary forms and regulations for administering the tax credit.

• Section 3

  This act shall apply to tax years beginning after December 31, 2025.

  Specifies that the new tax credit will apply to tax years starting after 2025.

• Section 4

  This act shall take effect in 30 days.

  Indicates the effective date of the act.

Action History

1. March 06, 2025

   Referred to FINANCE, March 6, 2025

Sponsors

• Camera Bartolotta · Cosponsor
• Cris Dush · Cosponsor
• Rosemary M. Brown · Cosponsor
• Tracy Pennycuick · Primary
• Wayne D. Fontana · Cosponsor
• Maria Collett · Cosponsor
• Scott E. Hutchinson · Cosponsor
• Jay Costa · Cosponsor
• Vincent J. Hughes · Cosponsor
• Frank A. Farry · Cosponsor
• Katie J. Muth · Cosponsor

Subjects