Pennsylvania HB 963: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Apprentice Education Expense Tax Credit Program and for powers of the Department of Revenue.

Bill Text

PRINTER'S NO. 1040
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 963
Session of
2025
INTRODUCED BY MALAGARI, HILL-EVANS, GIRAL, PIELLI, HANBIDGE,
CIRESI, SANCHEZ, FREEMAN, CEPEDA-FREYTIZ, WEBSTER, DEASY,
CERRATO AND GREEN, MARCH 19, 2025
REFERRED TO COMMITTEE ON FINANCE, MARCH 19, 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 Apprentice Education Expense Tax
Credit Program and for powers of the Department of Revenue.
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 XVII-M
APPRENTICE EDUCATION EXPENSE TAX CREDIT PROGRAM
Section 1701-M. Scope of article.
This article establishes tax credits for educational expenses
of apprentices.
Section 1702-M. Definitions.
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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:
"Department." The Department of Revenue of the Commonwealth.
"Employer." A Pennsylvania taxpayer who is the employer of
the qualifying apprentice.
"Qualified education expense." The amount incurred on behalf
of a qualifying apprentice, not to exceed $3,500, for tuition,
book fees and lab fees at the school in which the apprentice is
enrolled during the regular school year.
"Qualifying apprentice." An individual who:
(1) is a resident of this Commonwealth;
(2) is at least 16 years of age at the close of the
school year for which a credit is sought;
(3) during the school year for which a credit is sought,
was a full-time apprentice enrolled in an apprenticeship
program which is registered with the United States Department
of Labor, Office of Apprenticeship; and
(4) is employed in Pennsylvania by the taxpayer who is
the employer.
"School." A public or nonpublic postsecondary school in
Pennsylvania that is:
(1) an institution of higher education that provides a
program that leads to an industry-recognized postsecondary
credential or degree;
(2) an entity that carries out programs registered under
29 U.S.C. Ch. 4C (relating to apprentice labor ) ; or
(3) a public or private provider of a program of
training services, which may include a joint labor-management
organization.
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"Underserved area." A geographic area that meets one or more
of the following conditions:
(1) The area has a poverty rate of at least 20%
according to the latest Federal decennial census.
(2) Seventy-five percent or more of the children in the
area participate in the Federal free lunch program according
to reported statistics from the State Board of Education.
(3) At least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program.
(4) The area has an average unemployment rate as
determined by the Department of Labor and Industry that is
more than 120% of the national unemployment average, as
determined by the United States Department of Labor, for a
period of at least two consecutive calendar years preceding
the date of the application.
Section 1703-M. Apprenticeship Education Expense Tax Credit
Program.
(a) Establishment.--The Apprenticeship Education Expense Tax
Credit Program is established to certify applicants for an
apprenticeship tax credit.
(b) Issuance of tax credit certificate.--Upon the
department's approval, the department shall issue a tax credit
certificate to an employer incurring costs on behalf of a
qualifying apprentice stating the amount of the tax credit to
which the employer is entitled. If the employer is seeking a tax
credit for multiple qualifying apprentices, the department may
issue a single tax credit certificate that encompasses the
aggregate total of tax credits for qualifying apprentices for a
single employer.
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(c) Power and duties.--The department shall have the power
to:
(1) Promulgate regulations necessary for the
administration of this article, including establishing forms
for applications, notifications, contracts or any other
agreements. The department shall accept applications at any
time during the year and require that all applications be
submitted in an electronic form through the department's
publicly accessi