Pennsylvania HB 2116: An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, in tax relief in cities of the first class, further providing for supplemental senior citizen tax reduction; and, in senior citizens property tax and rent rebate assistance, providing for income calculation and further providing for property tax and rent rebate.

Bill Text

PRINTER'S NO. 2737
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2116
Session of
2026
INTRODUCED BY CIRESI, GUZMAN, RIVERA, HANBIDGE, SHUSTERMAN,
McNEILL, HOHENSTEIN, GUENST, HARKINS, GALLAGHER, SAPPEY,
KINKEAD, BOROWSKI, D. WILLIAMS, DONAHUE, PARKER, HILL-EVANS,
SANCHEZ, NEILSON, INGLIS AND CEPEDA-FREYTIZ, JANUARY 7, 2026
REFERRED TO COMMITTEE ON FINANCE, JANUARY 8, 2026
AN ACT
Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), entitled "An act providing for taxation by school
districts, for the State funds formula, for tax relief in
first class cities, for school district choice and voter
participation, for other school district options and for a
task force on school cost reduction; making an appropriation;
prohibiting prior authorized taxation; providing for
installment payment of taxes; restricting the power of
certain school districts to levy, assess and collect taxes;
and making related repeals," in tax relief in cities of the
first class, further providing for supplemental senior
citizen tax reduction; and, in senior citizens property tax
and rent rebate assistance, providing for income calculation
and further providing for property tax and rent rebate.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 704(a)(1) of the act of June 27, 2006
(1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
Act, is amended to read:
Section 704. Supplemental senior citizen tax reduction.
(a) Eligibility.--Beginning in the first year in which a
payment under section 505(b) is made and each year thereafter,
the following apply:
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(1) Except as provided in paragraph (2), any resident of
a city of the first class, a city of the second class A or a
resident of a school district of the first class A who is
eligible to receive a property tax rebate under Chapter 13
[and has a household income, as defined under section 1303,
equal to or less than $30,000] shall be eligible to receive
an additional property tax rebate equal to 50% of the amount
the individual is eligible to receive under Chapter 13.
* * *
Section 2. The act is amended by adding a section to read:
Section 1303.1. Income calculation.
For the purposes of calculating income under this chapter,
income shall be reduced by the face amount of property taxes
paid by the claimant on the claimant's primary residence
regardless of whether the taxes were paid in the discount, face
or penalty period.
Section 3. Section 1304 of the act is amended to read:
Section 1304. Property tax; and rent rebate.
(a) Schedule of rebates.--
(1) (Reserved).
(2) The following apply:
(i) The base amount of any claim for property tax
rebate for real property taxes due and payable during
calendar year 2023 and thereafter shall be determined in
accordance with the following schedule:
Household Income
Amount of Real Property Taxes
Allowed as Rebate
$ 0 - $ 8,000 $1,000
8,001 - 15,000 770
15,001 - 18,000 460
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18,001 - 45,000 380
(ii) [The] Except as otherwise provided in paragraph
(5), the supplemental amount for a claimant with [a
household income equal to or less than $30,000 and] an
eligible claim for property tax rebate for real property
taxes due and payable during the calendar year preceding
the first year in which a payment under section 505(b) is
made and each year thereafter and whose real property
taxes exceed 15% of the claimant's household income shall
be equal to 50% of the base amount determined under
subparagraph (i). A claimant who is a resident of a city
of the first class, a city of the second class A or a
school district of the first class A shall be ineligible
for the supplemental amount under this subparagraph.
(3) The following apply:
(i) The base amount of any claim for rent rebate in
lieu of property taxes for rent due and payable during
calendar year 2023 and thereafter shall be determined in
accordance with the following:
Household Income
Amount of Rent Rebate in
Lieu of Property Taxes
Allowed as Rebate
$ 0 - $ 8,000 $1,000
8,001 - 15,000 770
15,001 - 18,000 460
18,001 - 45,000 380
(ii) Except as otherwise provided in paragraph (5),
the supplemental amount for a claimant with an eligible
claim for rent rebate in lieu of property taxes and whose
gross rent actually paid exceeds 75% of the claimant's
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household income shall be equal to 50% of the base amount
determined under subparagraph (i).
(4) The household income limits contained in paragraphs
(2)(i) and (ii) and (3) shall be increased by a percentage
equal to the percentage change in the Consumer Price Index
for All Urban Consumers statistics published by the United
States Bureau of Labor Statistics. Any increase shall be
rounded to the nearest $10. The percentage change sha