Pennsylvania SB 1394: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in historic preservation incentive tax credit, further providing for definitions and for tax credit certificates.

Bill Text

PRINTER'S NO. 1842
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1394
Session of
2026
INTRODUCED BY FARRY, SAVAL, ARGALL, BOSCOLA, KEARNEY, FONTANA,
SANTARSIERO, COSTA, STREET, HAYWOOD, CAPPELLETTI,
PISCIOTTANO, SCHWANK, STEFANO, KANE, MILLER AND FLYNN,
JUNE 25, 2026
REFERRED TO FINANCE, JUNE 25, 2026
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 historic preservation incentive tax credit,
further providing for definitions and for tax credit
certificates.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "qualified taxpayer" in section
1702-H 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 1702-H. 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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"Qualified taxpayer." Any natural person, corporation,
business trust, limited liability company, partnership, limited
liability partnership, association or any other form of legal
business entity that:
(1) Is subject to a tax imposed under Article III, IV,
VI, VII, VIII, IX, XI or XV, excluding any tax withheld by an
employer under Article III.
(2) Owns a qualified historic structure. The term
includes an entity that is exempt from Federal income
taxation under 26 U.S.C. § 501(c)(3) (relating to exemption
from tax on corporations, certain trusts, etc.) and owns a
qualified historic structure.
* * *
Section 2. Section 1703-H(b)(5) of the act, amended July 11,
2024 (P.L.674, No.56), is amended to read:
Section 1703-H. Tax credit certificates.
* * *
(b) Review, recommendation and approval.--
* * *
(5) In granting tax credit certificates under this
article, the Department of Community and Economic
Development:
(i) Shall not grant more than $20,000,000 in tax
credit certificates in any fiscal year exclusive of any
tax credit certificates not awarded or returned from
previous fiscal years.
(ii) Shall not grant more than [$500,000] $1,500,000
in tax credit certificates to a single qualified taxpayer
in any fiscal year.
(iii) Shall assure that credits are awarded in an
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equitable manner to each region in this Commonwealth.
However, credits allocated to a region that are unclaimed
shall be promptly reallocated to eligible projects in
other regions.
Section 3. The amendment of section 1703-H(b)(5) of the act
shall apply to fiscal years beginning on or after July 1, 2025.
Section 4. This act shall take effect as follows:
(1) The amendment of the definition of "qualified
taxpayer" in section 1702-H of the act shall take effect in
60 days.
(2) The remainder of this act shall take effect
immediately.
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