Pennsylvania HB 1534: 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; providing for Pennsylvania Child and Dependent Care Enhancement Tax Credit Program; and making a repeal.

Bill Text

PRIOR PRINTER'S NO. 1808 PRINTER'S NO. 1879
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1534
Session of
2025
INTRODUCED BY HANBIDGE, CEPEDA-FREYTIZ, McNEILL, HADDOCK, HILL-
EVANS, SANCHEZ, CERRATO, RIVERA AND MALAGARI, JUNE 3, 2025
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 10, 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 tax credit and tax benefit administration,
further providing for definitions; and providing for
Pennsylvania Child and Dependent Care Enhancement Tax Credit
Program.; AND MAKING A REPEAL.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "tax credit" in section 1701-
A.1 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 1701-A.1. 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:
* * *
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"Tax credit." A tax credit authorized under any of the
following:
(1) Article XVII-B.
(2) Article XVII-D.
(3) Article XVII-E.
(4) Article XVII-G.
(5) Article XVII-H.
(6) Article XVII-I.
(7) Article XVII-J.
(8) Article XVII-K.
(8.1) Article XVII-L.
(9) Article XVIII.
(10) Article XVIII-B.
(11) Article XVIII-D.
(12) Article XVIII-E.
(13) Article XVIII-F.
(14) Article XVIII-G.
(14.1) Article XVIII-H.
(15) Article XIX-A.
(15.1) Article XIX-C.
(16) Article XIX-E.
(16.1) Article XIX-F.
(16.2) Article XIX-I.
(17) Section 2010.
(19) Article XX-B of the act of March 10, 1949 (P.L.30,
No.14), known as the Public School Code of 1949.
(20) The act of December 1, 2004 (P.L.1750, No.226),
known as the First Class Cities Economic Development District
Act.
(21) 12 Pa.C.S. Ch. 34 (relating to Infrastructure and
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Facilities Improvement Program).
(22) Any other program established by a law of this
Commonwealth in which a person applies for and receives a
credit against a tax. This paragraph shall not apply to a
credit against a tax liability as a result of an overpayment.
* * *
Section 2. The act is amended by adding an article to read:
ARTICLE XIX-I
PENNSYLVANIA CHILD AND DEPENDENT
CARE ENHANCEMENT TAX CREDIT PROGRAM
Section 1901-I. Scope of article.
This article relates to the Pennsylvania Child and Dependent
Care Enhancement Tax Credit Program.
Section 1902-I. 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:
"Applicable percent." As defined in section 21(a)(2) of the
Internal Revenue Code of 1986 in effect for the taxable year
beginning after December 31, 2021, and ending before January 1,
2023.
"Department." The Department of Revenue of the Commonwealth.
"Employment-related expenses." As defined in section 21(b)
(2) of the Internal Revenue Code of 1986.
"Internal Revenue Code of 1986." The Internal Revenue Code
of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
"Qualifying individual." As defined in section 21(b)(1) of
the Internal Revenue Code of 1986.
"Resident individual." An individual who:
(1) is domiciled in this Commonwealth, unless the
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individual maintains no permanent place of abode in this
Commonwealth and maintains a permanent place of abode
elsewhere and spends in the aggregate no more than 30 days of
the taxable year in this Commonwealth; or
(2) is not domiciled in this Commonwealth, but maintains
a permanent place of abode in this Commonwealth and spends in
the aggregate more than 183 days of the taxable year in this
Commonwealth.
"Tax credit." A tax credit provided for under this article.
"Tax liability." The liability for taxes imposed under
Article III, excluding any tax withheld by an employer under
Article III.
"Taxable year." As defined in section 301.
"Taxpayer." A resident individual subject to the tax imposed
under Article III.
Section 1903-I. Credit for child and dependent care employment-
related expenses.
(a) Tax credit.--For taxable years beginning after December
31, 2021, a taxpayer who receives a credit under section 21 of
the Internal Revenue Code of 1986 may claim a tax credit against
the taxpayer's tax liability.
(b) Am