Pennsylvania HB 1038: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in tax credit and tax benefit administration, further providing for definitions; and providing for green roof tax credit.

Bill Text

PRINTER'S NO. 1127
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1038
Session of
2025
INTRODUCED BY STEELE, HILL-EVANS, BRENNAN, PIELLI, MADDEN,
RIVERA, McANDREW, GIRAL, OTTEN, SANCHEZ, KHAN AND CEPEDA-
FREYTIZ, MARCH 25, 2025
REFERRED TO COMMITTEE ON ENVIRONMENTAL AND NATURAL RESOURCE
PROTECTION, MARCH 25, 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," in tax credit and tax benefit administration,
further providing for definitions; and providing for green
roof tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "tax credit" in section 1701-
A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, is amended by adding a paragraph to read:
Section 1701-A.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:
* * *
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22

"Tax credit." A tax credit authorized under any of the
following:
* * *
(16.2) Article XIX-L.
* * *
Section 2. The act is amended by adding an article to read:
ARTICLE XIX-L
GREEN ROOF TAX CREDIT
Section 1901-L. Scope of article.
This article relates to a green roof 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:
"Department." The Department of Revenue of the Commonwealth.
"Eligible rooftop space." The total space available to
support a green roof, as certified by a structural engineer.
"Green roof." An addition to a roof that supports living
vegetation and includes a synthetic, high-quality waterproof
membrane, drainage layer, soil layer and lightweight medium
plants.
"Tax credit." The credit provided under this article.
"Tax liability." For a taxpayer who is an individual, taxes
imposed under Article III and for all other taxpayers, taxes
imposed under Articles III, IV and VI.
Section 1903-L. Application.
A business or individual seeking a tax credit must file an
application with the department that includes the following:
(1) The address location of the proposed green roof.
(2) The total square footage of the rooftop.
20250HB1038PN1127 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

(3) The total square footage of the eligible rooftop
space.
(4) The total square footage of the proposed green roof.
(5) The total projected costs to construct the green
roof.
(6) Proof that the applicant has received all required
permits and approvals to construct the green roof, after
first submitting to the local building code official the
plans for the green roof and a written analysis conducted by
a roof engineer that confirms and certifies the following:
(i) The condition of the roof is satisfactory for
green roof construction.
(ii) The structural capacity of the roof would
support the proposed green roof.
(iii) There is appropriate and safe access to the
roof for maintenance purposes.
(iv) The weight of the proposed green roof is
appropriate for the roof.
(v) The plans include appropriate irrigation and
drainage measures.
Section 1904-L. Commitment agreement.
The department shall approve an application for a tax credit
if the application contains all of the required information.
After approval, the applicant must execute a commitment
agreement with the department specifying the following:
(1) The plans for the green roof, as approved by the
local building code official, which must provide for a green
roof covering at least 50% of the building's rooftop or 75%
of eligible rooftop space.
(2) The total projected costs for the construction of
20250HB1038PN1127 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

the green roof.
(3) The maximum tax credit the applicant may claim.
(4) The applicant's commitment to maintain the green
roof for a period of five years after the date of the roof's
completion and the applicant's acknowledgment that if the
taxpayer claims a tax credit and fails to incur the amount of
qualified construction or maintenance costs for a green roof
in that taxable year, the taxpayer shall repay to the
Commonwealth the amount of the tax credit claimed under this
article for the green roof.
Section 1905-L. Certification and credit.
(a) Credit.--After the applicant and the department have
executed a commitmen