Pennsylvania HB 1792: An Act amending the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, in preliminary provisions, further providing for definitions; and, in protective provisions, providing for truth in lending.

Bill Text

PRINTER'S NO. 2202
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1792
Session of
2025
INTRODUCED BY GUZMAN, WEBSTER, VITALI, WAXMAN, HILL-EVANS,
McANDREW, FREEMAN, OTTEN, PIELLI, RIVERA, GIRAL, SANCHEZ,
CEPEDA-FREYTIZ, MALAGARI AND CIRESI, AUGUST 7, 2025
REFERRED TO COMMITTEE ON FINANCE, AUGUST 10, 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 residential solar energy
incentives.
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-B.1
RESIDENTIAL SOLAR ENERGY INCENTIVES
Section 1701-B.1. 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:
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"Department." The Department of Revenue of the Commonwealth.
"Residential solar energy system." A photovoltaic solar
electric generation system installed on the premises of a
primary residence located in Pennsylvania that is intended to
supply electricity for use at the residence.
Section 1702-B.1. Personal income tax credit for residential
solar energy systems.
(a) Credit authorized.--A taxpayer shall be allowed a credit
against the personal income tax imposed by the Commonwealth for
the taxable year in which a residential solar energy system is
placed in service.
(b) Amount of credit.--The credit shall be equal to 15% of
the total cost incurred by the taxpayer for the purchase and
installation of a residential solar energy system, not to exceed
$2,500.
(c) Carryforward.--If the credit allowed under subsection
(a) exceeds the taxpayer's liability for the taxable year, the
excess may be carried forward and applied against the taxpayer's
personal income tax liability for the succeeding three taxable
years.
(d) Certification.--The department shall require a taxpayer
claiming the credit to provide proof of installation and system
compliance with applicable Federal and State standards.
Section 1703-B.1. Sales and use tax exemption for solar energy
equipment.
(a) Exemption.--The sale at retail and use of tangible
personal property used exclusively in the installation or
operation of residential solar energy systems shall be exempt
from the taxes imposed by this act.
(b) Definitions.--As used in this section, the following
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words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Tangible personal property." The term includes photovoltaic
panels, inverters, batteries, mounting racks, wiring and
associated equipment used in residential solar energy systems.
Section 1704-B.1. Property tax assessment exclusion.
(a) Exclusion authorized.--The increase in assessed value of
real property attributable to the installation of a residential
solar energy system shall be excluded from the assessed value of
the property for purposes of real estate taxation.
(b) Local option.--The exclusion under subsection (a) shall
apply only if the governing body of the local taxing
jurisdiction enacts an ordinance or resolution adopting the
exclusion.
Section 2. This act shall take effect in 60 days.
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