Pennsylvania HB 1667: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for exclusions from tax; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations and inquisitorial powers of the department, for retention of records and for penalties; in gross receipts tax, further providing for imposition of tax and providing for definitions; in tax credit and tax benefit administration, providing for application of tax credits or tax benefits to a unitary business; providing for educational tax credits and for education options tax credits; in manufacturing and investment tax credit, further providing for business firms and for tax credit certificates; providing for return on equity and for service and facilities; repealing provisions relating to Computer Data Center Equipment Incentive Program; providing for additional property tax rebate; in general provisions, providing for data centers; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties and providing for data centers.

Bill Text

SENATE AMENDED
PRIOR PRINTER'S NOS. 2043, 3677, 3708 PRINTER'S NO. 3709
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1667
Session of
2025
INTRODUCED BY TAKAC, SANCHEZ, HILL-EVANS, GUZMAN, SAMUELSON,
MAYES, D. WILLIAMS, NEILSON, WEBSTER, GREEN AND MADSEN,
JUNE 26, 2025
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, 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 SALES AND USE TAX, FURTHER PROVIDING FOR
EXCLUSIONS FROM TAX; IN GROSS RECEIPTS TAX, FURTHER PROVIDING
FOR IMPOSITION OF TAX AND FOR ESTABLISHMENT OF REVENUE-
NEUTRAL RECONCILIATION; PROVIDING FOR EDUCATIONAL TAX
CREDITS; in manufacturing and investment tax credit, further
providing for definitions, for business firms and for tax
credit certificates.; REPEALING PROVISIONS RELATING TO
COMPUTER DATA CENTER EQUIPMENT INCENTIVE PROGRAM; IN GENERAL
PROVISIONS, PROVIDING FOR DATA CENTERS; PROHIBITING THE
IMPOSITION OF A TAX ON GROSS RECEIPTS RECEIVED FROM THE SALE
OF ELECTRIC ENERGY; IMPOSING A PENALTY; AND MAKING A REPEAL
REPEALS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "closing date" in section 1822-
G of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, amended July 11, 2024 (P.L.674, No.56), is
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amended to read:
Section 1822-G. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Closing date."
(1) With respect to program one tax credit authority,
the date on which a rural growth fund has collected all of
the amounts specified by section 1825-G.
(2) With respect to program two tax credit authority,
[either] the earliest of the following:
(i) the date on which a rural growth fund has
collected all of the amounts specified under 1825-G; [or]
(ii) investment authority reallocated under section
1826-G(b) or 1833-G(c)[.]; or
(iii) December 31, 2024.
* * *
Section 2. Sections 1828-G(c) and 1829-G(b)(3) of the act
are amended to read:
SECTION 1. SECTION 1828-G(C) 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 1. SECTION 1101(B) AND (H) OF THE ACT OF MARCH 4,
1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ARE
AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO
READ:
SECTION 1. SECTION 204(58) OF THE ACT OF MARCH 4, 1971
(P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED
AND THE SECTION IS AMENDED BY ADDING A CLAUSE TO READ:
20250HB1667PN3709 - 2 -
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SECTION 204. EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY
SECTION 202 SHALL NOT BE IMPOSED UPON ANY OF THE FOLLOWING:
* * *
(58) THE SALE AT RETAIL OR USE OF A PERSONAL COMPUTER, A
TABLET, A PERSONAL DIGITAL ASSISTANT, A PERIPHERAL DEVICE OR AN
INTERNET ACCESS DEVICE, OR A SERVICE CONTRACT OR SINGLE-USER
LICENSED SOFTWARE PURCHASED IN CONJUNCTION WITH A PERSONAL
COMPUTER, TABLET, PERSONAL DIGITAL ASSISTANT, PERIPHERAL DEVICE
OR INTERNET ACCESS DEVICE, WITH A SALES PRICE OF NOT MORE THAN
ONE THOUSAND FIVE HUNDRED DOLLARS ($1,500), DURING THE EXCLUSION
PERIOD BY AN INDIVIDUAL PURCHASER FOR NONBUSINESS USE. THE
EXCLUSION DOES NOT INCLUDE A SALE AT RETAIL OR USE OF, LEASING,
RENTAL OR REPAIR OF A PERSONAL COMPUTER, TABLET, PERSONAL
DIGITAL ASSISTANT, PERIPHERAL DEVICE OR INTERNET ACCESS DEVICE;
MAINFRAME COMPUTERS; NETWORK SERVERS; LOCAL AREA NETWORK HUBS;
ROUTERS AND NETWORK CABLING; NETWORK OPERATING SYSTEMS;
MULTIPLE-USER LICENSED SOFTWARE; MINICOMPUTERS; [HAND-HELD
COMPUTERS; PERSONAL DIGITAL ASSISTANTS WITHOUT INTERNET ACCESS;]
HARDWARE WORD PROCESSORS; GRAPHICAL CALCULATORS; VIDEO GAME
CONSOLES; TELEPHONES; DIGITAL CAMERAS; PAGERS; COMPACT DISCS
ENCODED WITH MUSIC OR MOVIES; AND DIGITAL VERSATILE DISCS
ENCODED WITH MUSIC OR MOVIES. FOR PURPOSES OF THIS CLAUSE, THE
PHRASE "EXCLUSION PERIOD" MEANS THE PERIOD OF TIME FROM [AUGUST
5, 2001, TO AND INCLUDING AUGUST 12, 2001, AND FROM FEBRUARY 17,
2002, TO AND INCLUDING FEBRUARY 24, 2002.] THE FIRST SATURDAY IN
AUGUST TO AND INCLUDING THE THIRD SATURDAY IN AUGUST. FOR
PURPOSES OF THIS CLAUSE, "PURCHASER" MEANS AN INDIVIDUAL WHO
PLACES AN ORDER AND PAYS THE PURCHASE PRICE BY CASH OR CREDIT
DURING THE EXCLUSION PERIOD EVEN IF DELIVERY TAKES PLACE AFTER
THE EXCLUSION PERIOD.
20250HB1667PN