SB 401 creates a $1,000 tax credit for Pennsylvania employers who hire, have an employee enlist, or have an employee reenlist in the Pennsylvania National Guard. The credit applies against taxes under Articles III or IV of the Tax Reform Code and can be carried over for up to three years if not fully used in the first year. The total annual credit amount is capped at $5 million, with unused credits allocated proportionally if the cap is exceeded. This credit applies to tax years beginning after December 31, 2025, and requires employers to claim it in their first eligible tax year.
SB 962 eliminates school district property taxes for residential and commercial properties in Pennsylvania, effective for school districts starting in 2030. It replaces these taxes with two new revenue sources: a 2% increase in county-level sales and use taxes (on items like clothing and candy, previously exempt) and a local income tax of up to 1.88% on resident taxpayers' earned income and retirement benefits (excluding Social Security). The bill establishes two funds: the School District Property Tax Elimination Fund (to distribute sales tax revenue to school districts) and the School District Emergency Fund (for financial stability). It also requires landlords to reduce rents for tenants by the equivalent amount of eliminated property taxes. The legislation aims to shift school funding away from property taxes while maintaining school district budgets, affecting homeowners, businesses, and residents subject to the new income tax.
HB 286 allows Pennsylvania seniors meeting specific criteria to lock their property tax payments at the "base year" amount. To qualify, applicants must be at least 65 years old (or meet widow/widower/disabled criteria), live in their home for 10+ years, and have household income under $45,000 annually. Political subdivisions would implement the program through annual applications requiring proof of ownership, tax payment history, and income eligibility. The Department of Revenue would track participation and submit a legislative report by 2030.
HB 256 exempts transfers of funds from qualified tuition programs (like 529 college savings plans) from Pennsylvania's inheritance tax when moved to the designated beneficiary or their parent/guardian if the beneficiary is under 18. It uses federal definitions from the Internal Revenue Code (Section 529) to define "qualified tuition program" and "designated beneficiary." The change applies to estates of people who died after November 6, 2023. This policy directly affects families using these education savings programs by removing an inheritance tax burden on transferred funds.
SB 986 amends Pennsylvania's Tax Reform Code of 1971 to create a new tax credit under the PA EDGE economic development program specifically for businesses in the space economy. This provision would allow eligible space industry companies - such as those involved in satellite manufacturing, launch services, or space-related research - to claim tax credits for job creation and capital investments within Pennsylvania. The credits would reduce these businesses' state income tax liability, aiming to incentivize growth in the state's emerging space sector. The bill is currently referred to the Finance committee for further review.
SB 1004 allocates funding from the state's General Fund to cover the operating expenses of specific executive agencies for the fiscal year starting July 1, 2025, and ending June 30, 2026. It also directs payment for bills incurred but unpaid as of June 30, 2025, ensuring agencies can settle prior-year obligations. This bill directly affects the named executive agencies included in the appropriation schedule, providing them with necessary financial resources. The measure is a standard budgetary action that sets funding levels for state operations without altering policy or creating new programs.
HB 1846 amends Pennsylvania's 1971 Tax Reform Code to exempt compensation earned by individuals under 18 years old from personal income tax. This provision directly affects minor workers, such as teenagers with part-time jobs or summer employment, by excluding their earnings from taxable income. The bill adds a new tax exemption clause (303(a.7)(2)(i)(F)) specifying that compensation received by under-18 taxpayers is not subject to tax. The exemption applies to taxable years beginning after December 31, 2025, and takes effect immediately upon passage.
HB 1852 changes the 1971 Tax Reform Code to redirect revenue from the hotel occupancy tax into a dedicated Tourism Promotion Fund. This affects hotels and tourism businesses that pay the occupancy tax, as their payments will now support marketing efforts. The key provision creates a specific fund to finance advertising, promotions, and initiatives aimed at attracting visitors to the state. The bill directs these funds toward boosting tourism marketing and economic development in the state.
SB 853 creates a tax credit for small Pennsylvania businesses (with 50 or fewer full-time equivalent employees) affected by minimum wage increases. It allows employers to claim a credit equal to 50% of the wage increase cost in the first year after a minimum wage hike, and 25% in the second year, against their state tax liability. Unused credit can be carried over for up to three years but cannot be refunded or carried back. Pass-through businesses may also transfer unused credits to owners in proportion to their share of business income.
HB 260 amends Pennsylvania's vehicle code to update provisions related to liquid fuels and fuel taxes, specifically creating a process for refunding overpaid taxes. It directly affects taxpayers, such as businesses or individuals, who paid excess fuel taxes under previous regulations. The bill establishes clear mechanisms for claiming refunds, including eligibility criteria and submission procedures for those who qualify. This change aims to streamline tax recovery without altering the underlying tax rates or collection methods.
