PRINTER'S NO. 1442
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1106
Session of
2024
INTRODUCED BY MUTH, SANTARSIERO, FONTANA, COSTA, CAPPELLETTI AND
KANE, MARCH 22, 2024
REFERRED TO FINANCE, MARCH 22, 2024
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 personal income tax, further providing for
classes of income; in corporate net income tax, further
providing for definitions; and providing for personal health
investment tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303 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 subsection to read:
Section 303. Classes of Income.--* * *
(a.11) The following apply:
(1) An amount paid by a business that incurs costs by
offering free membership at a fitness facility to a qualified
individual shall be allowed as a deduction from taxable income
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on the annual personal income tax return. The amount paid as a
free membership at a fitness facility to a qualified individual
may not exceed the dollar amount paid as a membership at a
fitness facility to any other individual. The deduction shall
not result in taxable income being less than zero.
(2) For purposes of this subsection, the term "qualified
individual" means an individual who is on active and full-time
duty in the United States Armed Forces, a member of the
Pennsylvania National Guard or a member of a reserve component
of the armed forces as defined in 51 Pa.C.S. § 7301 (relating to
definitions).
* * *
Section 2. Section 401(3)1 of the act is amended by adding a
phrase to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(3) "Taxable income." 1. * * *
(u) (1) An additional deduction shall be allowed from
taxable income in an amount equal to the amount paid for costs
by offering free membership at a fitness facility to a qualified
individual. The amount paid as a free membership at a fitness
facility to a qualified individual shall not exceed the dollar
amount paid as a membership at a fitness facility to any other
individual.
(2) For purposes of this paragraph, the term "qualified
individual" means and individual who is on active and full-time
duty in the United States Armed Forces, a member of the
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Pennsylvania National Guard or a member of a reserve component
of the armed forces as defined in 51 Pa.C.S. § 7301 (relating to
definitions).
* * *
Section 3. The act is amended by adding an article to read:
ARTICLE XVIII-I
PERSONAL HEALTH INVESTMENT TAX CREDIT
Section 1801-I. Scope of article.
This article relates to personal health investment tax
credits.
Section 1802-I. 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.
"Qualified individual." An individual who is on active and
full-time duty in the United States Armed Forces, a member of
the Pennsylvania National Guard or a member of a reserve
component of the armed forces as defined in 51 Pa.C.S. § 7301
(relating to definitions).
"Qualified sports and fitness expenses." Amounts paid for
the sole purpose of participating in a physical activity,
including membership at a fitness facility, participation or
instruction in physical exercise or physical activity or
equipment used in a program, including a self-directed program,
of physical exercise or physical activity.
"Resident individual." As defined in section 301.
"Tax credit." A personal health investment tax credit
provided for under this article.
"Tax liability." The liability for taxes imposed under
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Article III, excluding any tax withheld by an employer under
Article III.
"Taxpayer." A resident individual subject to the tax imposed
under Article III.
Section 1803-I. Tax credit.
(a) Eligibility.--A taxpayer who is a qualified individual
and incurs qualified sports and fitness expenses in a taxable
year may claim a tax credit against the taxpayer's tax
liability.
(b) Amount of tax credit.--The amount of the tax credit may
not exceed $600 per taxpayer per taxable year.
(c) Claim of tax credit.--A taxpayer may claim a tax credit
on a return filed under section 330.
(d) Applicability of tax credit.--A tax credit shall be
applied against the taxpayer's tax liability.
Section 1804-I. Prohibitions.
The following apply:
(1) A taxpayer may not carry over, carry back, obtain a
refund of or sell, assign or transfer a tax credit.
(2) A taxpayer may not claim a tax credit for the same
qualified sports and fitness expenses used to claim a tax
credit on a return filed by another taxpayer.
Section 1805-I. Duties of department.
The department shall publish guidelines and may promulgate
regulations necessary for the implementation and administration
of this article.
Section 4. The addition of sections 303(a.11) and
401(3)1(u) and Article XVIII-I of the act shall apply to taxable
years commencing after December 31, 2023.
Section 5. This act shall take effect immediately.
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