Pennsylvania HB 1672: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Firefighter and Emergency Medical Service Provider Recruitment and Retention Tax Credit.

Bill Text

PRINTER'S NO. 2041
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1672
Session of
2025
INTRODUCED BY HOGAN, PROBST, LABS, DAVANZO, M. MACKENZIE, KRUPA,
STAATS, KUZMA, NEILSON, CAUSER, WATRO, FLEMING, RIVERA,
GILLEN AND DOUGHERTY, JUNE 26, 2025
REFERRED TO COMMITTEE ON FINANCE, JUNE 26, 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 Firefighter and Emergency Medical
Service Provider Recruitment and Retention Tax Credit.
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 XIX-L
FIREFIGHTER AND EMERGENCY
MEDICAL SERVICE PROVIDER RECRUITMENT
AND RETENTION TAX CREDIT
Section 1901-L . Scope of article.
This article relates to the Firefighter and Emergency Medical
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Service Provider Recruitment and Retention Tax Credit.
Section 1902-L . 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:
"Active, paid or volunteer firefighter or emergency medical
service provider." The term includes an active volunteer, as
defined in 35 Pa.C.S. § 79A03 (relating to definitions) and a
career first responder who volunteers or works for any of the
following:
(1) Career emergency medical services as defined in 35
Pa.C.S. § 7802 (relating to definitions).
(2) An emergency medical services company as defined in
35 Pa.C.S. § 7802.
(3) A fire company as defined in 35 Pa.C.S. § 7802.
(4) A volunteer emergency medical services company as
defined in 35 Pa.C.S. § 7802.
(5) A volunteer fire company as defined in 35 Pa.C.S. §
7802.
(6) A volunteer rescue company as defined in 35 Pa.C.S.
§ 7802.
"Department." The Department of Revenue of the Commonwealth.
"Qualifying taxpayer." An individual who is an active, paid
or volunteer firefighter or emergency medical service provider.
"Tax credit." The F irefighter and Emergency Medical Service
Provider Recruitment and Retention Tax Credit authorized under
this article.
"Tax liability." The liability for taxes imposed on
individuals under section 302.
"Taxpayer." A qualified individual subject to the tax
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imposed under Article III.
Section 1903-L . Credit for attraction and retention of needed
professionals.
(a) Tax credit.--For taxable years beginning after December
31, 2024 , a qualifying taxpayer may claim a tax credit, to be
known as the Firefighter and Emergency Medical Service Provider
Recruitment and Retention Tax Credit, not to exceed $2,500
against the qualifying taxpayer's tax liability for wages
earned.
(b) Claim of tax credit.--A taxpayer must claim a tax credit
on a return filed under section 330.
(c) Adequate proof of qualifications.--A taxpayer must
provide the department with proof that the taxpayer is a
qualified taxpayer.
(d) Applicability of tax credit.--The tax credit shall be
considered a payment of estimated tax made under Part VIII of
Article III.
(e) Duration of tax credit.--A taxpayer may claim the tax
credit for the year in which the taxpayer first becomes a
qualified taxpayer and the next two succeeding tax years if the
qualified taxpayer remains employed in a qualifying field .
Section 1904-L . Prohibitions.
A qualified taxpayer may not carry over, carry back, sell,
assign or transfer a tax credit.
Section 1905-L . Departmental duties.
The department shall publish guidelines and may promulgate
regulations necessary for the implementation and administration
of this article.
Section 1906-L . Applicability.
The tax credit shall apply to individuals who become
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qualifying taxpayers after December 31, 2025 , and prior to
January 1, 2029 .
Section 1907-L . Expiration.
The authority of the department to issue tax credits under
this article shall expire December 31, 2031 .
Section 2. This act shall take effect in 60 days.
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