House Bill 1393 establishes the Family and Medical Leave Tax Credit Program, offering a state tax credit to businesses that provide paid family and medical leave to their employees. This credit is available to business firms in the Commonwealth that have already received the federal family and medical leave tax credit. To qualify, businesses must apply to the Department of Community and Economic Development, providing proof of their federal credit, with the state credit matching the federal amount received. The total amount of these state tax credits is capped at $100,000,000 annually, distributed on a first-come, first-served basis, and cannot exceed a business's tax liability.
SB 656 proposes changes to Pennsylvania's corporate net income tax, primarily affecting corporations that are part of a "unitary business," meaning a group of related companies operating as a single economic unit. Beginning after December 31, 2025, these businesses would calculate their taxable income based on the combined income of their U.S. operations ("water's-edge basis"). The bill also modifies rules for deductions related to intercompany dividends and addresses the treatment of intangible and interest expenses incurred in transactions between affiliated entities. Income for these unitary businesses would be apportioned to the state using a sales factor.
SB 930 amends Pennsylvania's Public School Code to strengthen school safety and security systems. It establishes a School Safety and Security Committee, requires schools to appoint coordinators for safety planning, and mandates annual training for staff on topics like cyber safety, active shooter drills, and mental health awareness. The bill creates a grant program funding mental health services and cyber security measures (e.g., preventing data breaches), with funds restricted to these purposes. Schools must report safety meeting attendance and security personnel details annually, starting in 2026, to their boards of directors. These changes directly affect public school districts, charter schools, and their administrators.
HB 1357 amends Pennsylvania's tax code to allow employees to deduct overtime pay from their taxable income when filing personal income tax returns. The bill defines "overtime pay" as compensation earned for hours worked beyond 40 per week (per federal standards) and requires employers to withhold tax on this amount. Employees who received overtime in 2026 or later can subtract the full overtime amount from their taxable income, potentially resulting in a tax refund if the deduction lowers their liability below zero. This directly affects Pennsylvania employees who earn overtime and employers who withhold taxes on such earnings. The changes apply to tax years beginning January 1, 2026.
HB 1763 aligns Pennsylvania's tax credit program with a federal tax credit for contributions to scholarship organizations. It requires scholarship organizations in Pennsylvania to verify their tax-exempt status, maintain separate accounts for scholarship funds, provide scholarships to at least 10 students from different schools, spend 90% of income on scholarships, and verify applicants' household income to ensure eligibility. Organizations must submit compliance documentation by June 1, 2026, and annually thereafter, with the state department confirming their eligibility for the federal tax credit. This directly affects scholarship organizations seeking to participate in the federal tax credit program, ensuring they meet federal requirements to allow donors to claim tax benefits.
HB 2034 creates the Mushroom Farming and Composting Fund within Pennsylvania's Department of Agriculture to support mushroom farmers and composting businesses. The bill requires the Department to manage the fund, which will provide financial assistance for mushroom farming operations and composting initiatives. It directly affects mushroom growers and composting businesses by establishing a dedicated funding source for their industry. The key policy change is the creation of this new fund, replacing any existing mechanisms for supporting these specific agricultural activities.
HB 194 creates Pennsylvania's Mental Health Professional Student Loan Forgiveness Program, targeting mental health workers serving children and adolescents. It allows eligible residents who complete qualifying degrees (like social work, counseling, or psychology) and work in early childhood-to-adolescence mental health roles to receive up to $22,500 in loan forgiveness after signing a 7-year employment contract. The Pennsylvania Higher Education Assistance Agency (PHEAA) administers the program, requiring applicants to prove residency, partial degree completion, faculty recommendations, and secure employment in the specified field. Participants must maintain employment for seven years or repay the forgiven amount if they leave the field early, fail to comply, or provide false information. This directly affects mental health professionals in Pennsylvania seeking relief from student debt while addressing workforce needs in youth mental health.
SB 484 amends Pennsylvania's 1971 Tax Reform Code to exclude qualifying solar energy systems from state sales and use tax. It exempts the retail sale or use of solar systems (including components) that meet national and industry standards for equipment, installation, and performance. The Department of Revenue will create regulations defining these standards, covering systems used for water heating, space heating, cooling, or other solar applications. This policy directly affects consumers and businesses purchasing compliant solar installations by reducing their upfront costs.
HB 1989 creates the Keystone National Finance Authority to manage economic development financing in Pennsylvania. This new state agency will replace existing mechanisms under Title 64 for issuing bonds and providing loans to support projects like job creation, infrastructure, and business growth. It directly affects state agencies, local governments, and businesses seeking financing for qualifying economic development initiatives. The bill establishes clear processes for the authority to approve projects, issue debt, and manage funds, streamlining how financing is accessed for public and private development efforts.
HB 979 requires Pennsylvania state agencies (excluding the Treasury Department, Auditor General, and Attorney General) to assess improper payments in their programs at least every two years, with an initial assessment due within 120 days. Agencies must classify programs by risk level (low, moderate, high), identify root causes of improper payments in high-risk programs, and develop corrective action plans targeting a 3% or lower error rate. The bill mandates that the Office of the Budget publish detailed, real-time data online - including improper payment totals, high-risk program details, corrective plans, and recovery efforts - to increase transparency. This directly affects how state agencies manage spending and report financial accountability to the public and oversight bodies.
