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PRINTER'S NO. 1117
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
853
Session of
2017
INTRODUCED BY YUDICHAK, BAKER, SABATINA, GREENLEAF, BREWSTER,
TARTAGLIONE, WARD, COSTA, McGARRIGLE, BROWNE, BLAKE AND
BOSCOLA, AUGUST 29, 2017
REFERRED TO FINANCE, AUGUST 29, 2017
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 livable home 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 XVIII-H
LIVABLE HOME TAX CREDIT
Section 1801-H. Scope of article.
This article relates to livable home tax credit.
Section 1802-H. Definitions.
The following words and phrases when used in this article
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shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Credit." The livable home tax credit provided for under
this article.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Primary residence." A dwelling unit used as a place of
primary habitation by an individual.
"Secretary." The Secretary of Community and Economic
Development of the Commonwealth.
"Taxpayer." An individual subject to payment of taxes under
Article III.
Section 1803-H. Tax credit for taxable years beginning on or
after January 1, 2018.
(a) General rule.--For taxable years beginning on or after
January 1, 2018, a taxpayer who purchases a primary residence or
modifies the taxpayer's existing primary residence shall be
allowed a credit against the tax imposed under section 302 for
features or alterations that are designed to improve
accessibility within or related to the residence and that meet
eligibility guidelines established by the department. All
accessibility features and alterations shall be subject to the
requirements of the act of November 10, 1999 (P.L.491, No.45),
known as the Pennsylvania Construction Code Act.
(b) Limitation.--The credit shall be allowed for the taxable
year in which the new primary residence is purchased or the
alteration of the existing residence is completed. The credit
allowed under this section may not exceed the sum of $5,000 for:
(1) the addition or inclusion of accessibility features
within or related to the primary residence; or
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(2) accessibility alterations within or related to an
existing primary residence.
(c) Application.--The credit shall require application by
the taxpayer as provided in section 1804-H.
(d) Prohibition.--No credit may be allowed under this
section for purchase, construction or renovation of residential
rental property.
Section 1804-H. Procedure.
(a) Application.--An eligible taxpayer must apply for the
credit by submitting an application to the department. The
department shall issue a certification for an approved
application to the taxpayer. The taxpayer shall attach the
certification to the applicable income tax return.
(b) Amount of tax credits.--The total amount of credits
granted during a fiscal year may not exceed $1,000,000.
(c) Application exceeding allocation.--If applications for
the credits exceed the amount allocated by the secretary for the
fiscal year, the department shall issue the credits pro rata
based upon the amount of credits approved for each taxpayer and
the amount of credits allocated by the secretary.
Section 1805-H. Limitation.
(a) General rule.--In no case may the amount of credits
taken by a taxpayer pursuant to this article exceed the
taxpayer's income tax liability for the taxable year.
(b) Carryover.--If the amount of credit allowed for the
taxable year in which the new primary residence is purchased or
renovation of the existing primary residence is completed
exceeds the taxpayer's income tax liability imposed for the
taxable year, the amount that exceeds the tax liability may be
carried over for the credit against the income taxes of the
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taxpayer in the next seven taxable years or until the total
amount of the tax credit issued has been taken, whichever is
sooner.
Section 1806-H. Guidelines.
The department shall establish guidelines necessary to
implement this article.
Section 2. This act shall take effect in 60 days.
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