Pennsylvania 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.

Bill Text

PRIOR PRINTER'S NO. 1681 PRINTER'S NO. 2713
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1450
Session of
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
Amending the act of 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; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; 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; providing for Homebuyer Rebate Program; and
establishing the Homebuyer Rebate Program Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. 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 1102-C.6. Transfer of Tax.--* * *
(e) Beginning July 31, 2026, and each July 31 thereafter,
the State Treasurer shall transfer an amount equal to ten per
cent of the tax collected under this article into the Homebuyer
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Rebate Program Fund established under section 1905-L.
Section 2. The act is amended by adding an article 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:
ARTICLE XIX-L
HOMEBUYER REBATE PROGRAM
Section 1901-L. 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:
"DEPARTMENT." T HE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
"Domicile." As defined in section 501 of the act 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.
"Homebuyer Rebate Program." The program established under
section 1902-L.
"Homestead." A dwelling, including the parcel of land on
which the dwelling is located and the other improvements located
on the parcel for which any of the following apply:
(1) The dwelling is primarily used as the domicile of an
owner who is a natural person.
(2) The dwelling is one of the following:
(i) A unit in a condominium as the term is defined
in 68 Pa.C.S. § 3103 (relating to definitions) and the
unit is primarily used as the domicile of a natural
person who is an owner of the unit.
(ii) The dwelling is a unit in a cooperative as the
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term is defined in 68 Pa.C.S. § 4103 (relating to
definitions) and the unit is primarily used as the
domicile of a natural person who is an owner of the unit.
"Qualified homebuyer." An individual who meets all of the
following:
(1) Has not either:
(i) Previously purchased a home within this
Commonwealth.
(ii) Purchased a home within this Commonwealth
within five years prior to the date of application for
the Homebuyer Rebate Program.
(1) HAS NOT PREVIOUSLY PURCHASED A HOME.
(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.
"Tax liability." The portion of the realty transfer tax due
under Article XI-C for the transfer of the homestead that the
qualified homebuyer agreed to pay under a written agreement
between the seller of the homestead and the qualified homebuyer.
Section 1902-L. Homebuyer Rebate Program.
The Homebuyer Rebate Program is established within the
Department of Revenue DEPARTMENT .
Section 1903-L. Claims.
(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. Except as otherwise provided in subsection (b), the
claim shall be filed with the department on or before June 30 of
the year next succeeding the end of the calendar year in which
the realty transfer tax was due and payable.
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(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.
(c) Contents of claim.--Each claim shall include, at a
minimum:
(1) The size