Pennsylvania HB 891: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Keystone State Apprenticeship Tax Credit; establishing the Keystone State Apprenticeship Tax Credit Program; and imposing duties on the Department of Labor and Industry.

Bill Text

PRINTER'S NO. 931
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 891
Session of
2025
INTRODUCED BY WEBSTER, MADDEN, SANCHEZ, KHAN, HILL-EVANS,
INGLIS, CERRATO, NEILSON AND MALAGARI, MARCH 13, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 13, 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," providing for Keystone State Apprenticeship Tax
Credit; establishing the Keystone State Apprenticeship Tax
Credit Program; and imposing duties on the Department of
Labor and Industry.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVIII-I
KEYSTONE STATE APPRENTICESHIP TAX CREDIT
Section 1801-I. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Certified employer." A qualified employer that has received
a final certificate of eligibility from the department after the
department has determined that the qualified employer has
fulfilled all eligibility criteria to participate in the
program. The final certificate of eligibility shall state the
actual amount of tax credit that a certified employer is
entitled to claim and the allocation year of the tax credit.
"Construction." The act of constructing, reconstructing,
altering, maintaining, moving, rehabilitating, repairing,
renovating, fabricating, servicing or demolishing a building,
structure, improvement or component, or an act relating to the
excavation of or other development or improvement to land.
"Department." The Department of Labor and Industry of the
Commonwealth.
"Disadvantaged youth." An individual who is:
(1) Between 16 and 24 years of age when the individual
begins an apprenticeship.
(2) Low-income or at-risk, as those terms are defined by
the department.
"Mentor." An individual who provides instruction, guidance
and support to the apprentice on a regular basis throughout the
apprentice's completion of the apprenticeship as the apprentice
seeks employment in the field or industry of the apprenticeship.
"Participating employer." A qualified employer that has
applied to participate in the program and received a preliminary
certificate of tax credit from the department. The preliminary
certificate shall state the maximum amount of the tax credit
that the employer may be able to claim if the applicant becomes
a certified employer.
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"Program." The Keystone State Apprenticeship Tax Credit
Program established under section 1802-I.
"Qualified apprentice." An individual employed by a
participating employer in a full-time position for at least six
months of a calendar year under a qualified apprenticeship
agreement with a qualified employer. An individual employed by a
qualified employer shall not be deemed a qualified apprentice if
the individual has not completed the apprenticeship training
program within one year of the expected date of completion of
the program.
"Qualified apprenticeship agreement." An apprenticeship
agreement that has been registered with and approved by the
department for a trade other than a construction trade.
"Qualified employer." An employer that participates in a
department-approved apprenticeship program.
"Secretary." The Secretary of Labor and Industry of the
Commonwealth.
Section 1802-I. Powers and duties of secretary.
(a) Establishment.--The Keystone State Apprenticeship Tax
Credit Program is established to provide tax incentives to
certified employers for employing qualified apprentices under a
qualified apprenticeship agreement registered with the
department under section 4 of the act of July 14, 1961 (P.L.604,
No.304), known as The Apprenticeship and Training Act.
(b) Allocation.--The secretary may allocate up to
$10,000,000 in tax credits annually beginning July 1, 2025, and
ending on July 1, 2030. Any unused annual allocation of tax
credits shall be made available in each of the subsequent years
before 2030.
(c) Guidelines and criteria.--
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(1) The secretary shall establish guidelines and
criteria that specify requirements for qualified employers to
participate in the program, incl