Pennsylvania HB 1004: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in research and development tax credit, further providing for limitation on credits.

Bill Text

PRINTER'S NO. 1091
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1004
Session of
2025
INTRODUCED BY BRIGGS, GAYDOS, BRENNAN, MADDEN, KOSIEROWSKI,
PIELLI, KHAN, McNEILL, INGLIS, STEELE, HILL-EVANS, MULLINS,
FRIEL, WEBSTER, N. NELSON, MALAGARI, NEILSON, SANCHEZ, DALEY,
FREEMAN, KINKEAD AND ZIMMERMAN, MARCH 24, 2025
REFERRED TO COMMITTEE ON FINANCE, MARCH 24, 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 research and development tax credit, further
providing for limitation on credits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1709-B(a) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
to read:
Section 1709-B. Limitation on Credits.--(a) The total
amount of credits approved by the department shall not exceed
[sixty] one hundred twenty million dollars [($60,000,000)]
($120,000,000) in any fiscal year. Of that amount, [twelve]
twenty-four million dollars [($12,000,000)] ($24,000,000) shall
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be allocated exclusively for small businesses. However, if the
total amounts allocated to either the group of applicants
exclusive of small businesses or the group of small business
applicants is not approved in any fiscal year, the unused
portion will become available for use by the other group of
qualifying taxpayers.
* * *
Section 2. This act shall take effect in 60 days.
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