PRIOR PRINTER'S NO. 496
PRINTER'S NO. 2968
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
528
Session of
2023
INTRODUCED BY NEILSON, CIRESI, SCHLOSSBERG, KINSEY, SANCHEZ,
PROBST, GIRAL, HILL-EVANS, MADDEN, BURGOS, DELLOSO, STRUZZI,
WARREN, D. WILLIAMS, PARKER, DEASY, MALAGARI, MARCELL,
KINKEAD, GREEN, CERRATO AND WAXMAN, MARCH 17, 2023
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, APRIL 17, 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," providing for teacher tax credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XVII-B.1
TEACHER TAX CREDIT
Section 1701-B.1. Scope of article.
This article relates to teacher tax credits.
Section 1702-B.1. Definitions.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
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:
"Certified teacher." A teacher who is certified by the
Commonwealth and currently employed as a teacher.
"CERTIFIED TEACHER." A TEACHER WHO, DURING ANY PORTION OF
THE TAXABLE YEAR FOR WHICH THE TAX CREDIT IS BEING SOUGHT, WAS
CERTIFIED AS A TEACHER BY THE COMMONWEALTH AND WAS EMPLOYED AS A
TEACHER IN A PUBLIC, NONPUBLIC OR CHARTER SCHOOL.
"Classroom expenses and supplies." The term includes books,
supplies, computers and related equipment, including related
software and services, other equipment and supplementary
materials.
"Department." The Department of Revenue of the Commonwealth.
"Tax credit." The teacher tax credit established under this
article.
"Taxpayer." An individual subject to tax under Article III.
Section 1703-B.1. Tax credit for teachers.
A taxpayer who is a certified teacher and incurs expenses for
the purchase of classroom expenses and supplies in a taxable
year may apply for a teacher tax credit as provided in this
article.
Section 1704-B.1. Limitation on credits.
(a) Limit.--The total amount of credits approved by the
department shall not exceed $15,000,000 in any fiscal year.
(b) Amount of credit.--The amount of the tax credit under
this section may not exceed $500 per applicant per tax year.
TAX CREDIT.
SECTION 1704-B.1. ELIGIBILITY.
(A) DETERMINATION OF ELIGIBILITY.--IN ORDER TO DETERMINE
20230HB0528PN2968 - 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
ELIGIBILITY FOR THE TAX CREDIT, THE DEPARTMENT OF EDUCATION
SHALL ANNUALLY PROVIDE TO THE DEPARTMENT A LIST OF ALL
INDIVIDUALS WHO WERE CERTIFIED TEACHERS DURING THE TAXABLE YEAR.
(B) INELIGIBILITY.--
(1) A TAXPAYER SHALL BE INELIGIBLE FOR THE TAX CREDIT
UNLESS THE DEPARTMENT VERIFIES THAT THE TAXPAYER'S NAME
APPEARS ON THE LIST PROVIDED BY THE DEPARTMENT OF EDUCATION
FOR THE TAXABLE YEAR IN WHICH THE TAX CREDIT IS BEING SOUGHT.
(2) A TAXPAYER SHALL BE INELIGIBLE FOR THE TAX CREDIT IF
THE TAXPAYER HAS CLAIMED A DEDUCTION FOR UNREIMBURSED
BUSINESS EXPENSES RELATED TO CLASSROOM EDUCATION UNDER
ARTICLE III FOR THE TAXABLE YEAR IN WHICH THE TAX CREDIT IS
SOUGHT. THIS PARAGRAPH SHALL NOT APPLY IF ANY PART OF THE
AMOUNT OF UNREIMBURSED BUSINESS EXPENSES CLAIMED IS UNRELATED
TO CLASSROOM EDUCATION.
SECTION 1705-B.1. CARRYOVER, CARRYBACK, SALE, AND ASSIGNMENT OF
TAX CREDIT.
A TAXPAYER IS NOT ENTITLED TO CARRY FORWARD, CARRY BACK, SELL
OR ASSIGN ALL OR A PORTION OF A TAX CREDIT GRANTED TO THE
TAXPAYER UNDER THIS ARTICLE.
SECTION 1706-B.1. AMOUNT OF CREDIT.
THE AMOUNT OF THE TAX CREDIT SHALL BE EQUAL TO 50% OF THE
AMOUNT OF THE FEDERAL TAX DEDUCTION CLAIMED BY THE TAXPAYER
UNDER 26 U.S.C. ยง 62(A)(2)(D) (RELATING TO ADJUSTED GROSS INCOME
DEFINED).
Section 1705-B.1 1707-B.1 . Application.
A taxpayer may apply for a tax credit under this article in a
manner prescribed by the department.
Section 1706-B.1 1708-B.1 . Administration.
The department shall promulgate rules and regulations to
20230HB0528PN2968 - 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
administer the provisions of this article.
Section 2. This act shall apply to taxable years commencing
after December 31, 2023.
Section 3. This act shall take effect immediately.
20230HB0528PN2968 - 4 -
1
2
3
4