SB 792 sets annual limits on Pennsylvania's research and development (R&D) tax credit program. It caps total annual credits at $120 million, with $24 million specifically reserved for small businesses. Unused portions of either the small business allocation or the general allocation can roll over to the other group if not fully claimed in a given year. This bill directly affects businesses claiming R&D tax credits in Pennsylvania, particularly small businesses that receive priority funding. The change modifies the existing tax credit structure under the 1971 Tax Reform Code.
This bill proposes a constitutional amendment allowing counties (of first and second class) to create special property tax exemptions for longtime owner-occupants in neighborhoods where home values have risen significantly due to renovations or new construction nearby. It would let local governments establish uniform tax rules for these homeowners without increasing overall property tax rates to fund the exemptions. The amendment requires approval by the General Assembly and then a vote by Pennsylvania voters before taking effect.
SB 929 proposes a constitutional amendment to end school districts' authority to levy real property taxes after June 30, 2029. It directly affects Pennsylvania school districts, requiring the state to replace their lost property tax revenue through new state or local income, sales, or service taxes. The bill mandates that the General Assembly annually fund school districts at levels matching their pre-2029 property tax collections, depositing new tax revenue into a dedicated "Stabilization of Education Fund" exclusively for school support. It explicitly prohibits any future real property taxes and prevents diversion of funds from the stabilization account.
HB 1085 amends Pennsylvania's Motor License Fund allocation rules for the Pennsylvania State Police. It sets a 2025-2026 funding cap at 68% of the 2016-2017 level ($125 million) and eliminates all future appropriations for this purpose starting in fiscal year 2026-2027. The bill directly affects the State Police budget and the Motor License Fund, which is funded by vehicle registration fees. This is a procedural budget adjustment with no new policy changes, solely modifying existing funding levels.
HB 1742 eliminates Pennsylvania's personal income tax for tax years beginning on or after January 1, 2026. It removes the requirement for employers to withhold income tax from wages starting in 2026 and repeals filing obligations for Pennsylvania S corporations for tax years starting after 2025. The bill directly affects Pennsylvania residents, employers, and S corporations by ending income tax liability, withholding, and related return filings for future tax years. Key provisions amend Sections 302(a), 323, 330(a), and 330.1(a) of the Tax Reform Code of 1971 to reflect these changes. The law takes effect immediately, but the tax changes apply only to tax years beginning in 2026 or later.
This bill creates a property tax freeze program for Pennsylvania seniors. It allows residents aged 65+ who have lived in Pennsylvania for at least five years to freeze their property taxes at the "base year" amount if they meet income requirements ($65,000 annual household income or taxes exceeding 10% of income). The freeze applies only to primary residences and must be renewed annually with proof of continued eligibility. Local governments implement the program, and the state department tracks participation and savings through annual reports.
SB 831 modifies Pennsylvania's tax exemption for disabled veterans by expanding a property value reduction program. It provides tiered tax relief: veterans with a 10%+ service-connected disability (verified by the VA) receive $7,500 to $15,000 off their home's taxable value, depending on disability severity (10-29% to 70%+). This applies to veterans who own their primary residence solely, with a spouse, or as tenants by the entirety but do not qualify for the full exemption under existing law. The bill directly affects Pennsylvania veterans with military service-related disabilities who pay real estate taxes on their primary home.
This bill proposes a constitutional amendment to exempt certain veterans and their surviving spouses from Pennsylvania property taxes on their primary residences. It applies to veterans who served honorably and have specific service-connected disabilities (such as blindness, paralysis, amputation, or a 100% VA-rated disability), as well as surviving spouses of veterans killed in action or with service-connected deaths. The exemption requires the State Veterans' Commission to verify the applicant’s financial need and does not consider disability compensation when determining eligibility. The amendment must be approved by the General Assembly and voters before taking effect.
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.
