PRINTER'S NO. 1333

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1242

Session of

2023

INTRODUCED BY WEBSTER, KINSEY, MADDEN, SANCHEZ, GUENST, HILL-

EVANS, FLEMING, CERRATO, CEPEDA-FREYTIZ, HOHENSTEIN, DELLOSO

AND SCOTT, MAY 24, 2023

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 Keystone State Apprenticeship 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

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Certified employer." A qualified employer that has received

a final certificate of eligibility from the department after the

department has determined that the qualified employer has

fulfilled all eligibility criteria to participate in the

program. The final certificate of eligibility shall state the

actual amount of tax credit that a certified employer is

entitled to claim and the allocation year of the credit.

"Construction." The act of constructing, reconstructing,

"Disadvantaged youth." An individual who is:

(1) Between 16 and 24 years of age when the individual

begins an apprenticeship.

(2) Low-income or at-risk, as those terms are defined by

the department.

"Mentor." An individual who provides instruction, guidance

and support to the apprentice on a regular basis throughout the

apprentice's completion of the apprenticeship as the apprentice

seeks employment in the field or industry of the apprenticeship.

"Participating employer." A qualified employer that has

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Program established under section 1802-I.

"Qualified apprentice." An individual employed by a

participating employer in a full-time position for at least six

months of a calendar year under a qualified apprenticeship

agreement with a qualified employer. An individual employed by a

qualified employer shall not be deemed a qualified apprentice if

the individual has not completed the apprenticeship training

program within one year of the expected date of completion of

"Secretary." The Secretary of Labor and Industry of the

Commonwealth.

Section 1802-I. Powers and duties of secretary.

(a) Establishment.--The Keystone State Apprenticeship Tax

Credit Program is established to provide tax incentives to

certified employers for employing qualified apprentices under an

apprenticeship agreement registered with the department under

section 4 of the act of July 14, 1961 (P.L.604, No.304), known

as The Apprenticeship and Training Act.

(b) Allocation.--The secretary may allocate up to

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criteria that specify requirements for qualified employers to

participate in the program, including criteria for certifying

qualified apprentices.

(2) The secretary may give preference to qualified

employers that hire and train disadvantaged youth through

qualified apprenticeship agreements and qualified employers

that are engaged in demand occupations or industries or in

regional growth sectors, including those identified by the

(4) The secretary may take the following factors into

consideration when evaluating whether to approve an

application in a year subsequent to the year in which a

qualified employer was determined to be a certified employer:

(i) The length of the qualified apprenticeship

agreement into which the employer has entered.

(ii) How many apprentices have graduated from the

apprenticeship program to which the qualified apprentice

employed by the employer belongs.

(iii) How many apprentices in the apprenticeship

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apprentice. The base credit allowed under the program shall

be computed as follows:

(i) Two thousand dollars for each first-year

apprentice.

(ii) Three thousand dollars for each second-year

apprentice.

(iii) Four thousand dollars for each third-year

apprentice.

apprentice is no longer employed by the participating

employer on the last day of the calendar year, on the last

day of the apprentice's employment with the participating

employer.

(b) Disadvantaged youth credit.--

(1) In lieu of the credit specified in subsection (a),

for each qualified apprentice who is considered a

disadvantaged youth for each tax year:

(i) Five thousand dollars for each first-year

apprentice.

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apprentice is no longer employed by the participating

employer on the last day of the calendar year, on the last

day of the apprentice's employment with the participating

employer. If a disadvantaged youth under 25 years of age

begins an apprenticeship, a certified employer shall be

eligible to continue to receive the tax credit for the

disadvantaged youth under this subsection until that

apprentice completes the apprenticeship.

apprentice is the basis for any other State tax credit.

Section 1804-I. Application and approval.

(a) Application.--To participate in the program, a qualified

employer must submit to the secretary an application in a form

prescribed by the secretary. As part of the application, a

qualified employer must:

(1) Agree to allow the Department of Revenue to share

the applicant's tax information with the department.

Information shared as a result of this agreement is exempt

from access under the act of February 14, 2008 (P.L.6, No.3),

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employer meets the eligibility conditions specified in this

article and any applicable regulations promulgated by the

secretary, the department may admit the applicant into the

program as a participating employer and provide the applicant

with a preliminary certificate of eligibility establishing the

qualified employer as a participating employer and stating the

maximum amount of credit for which the applicant is eligible.

Section 1805-I. Final report.

amount of credit allowed for that calendar year, notwithstanding

the fact that a participating employer's taxable year may be a

fiscal year. The final certificate of eligibility shall state

the actual amount of tax credit that a certified employer is

entitled to claim and the allocation year of the credit.

Section 1806-I. Certification of employer.

(a) Certification.--After review and approval of the final

report, the secretary shall certify the participating employer

as a certified employer and issue a final certificate of tax

credit. The certificate shall include the following information:

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(3) The allocation year of the credit.

(4) Any other information deemed necessary by the

secretary.

(b) Taxable year.--If a certified employer's taxable year is

a fiscal year, the certified employer shall be entitled to claim

the credit on the return for the fiscal year that includes the

last day of the calendar year covered by the final certificate

of tax credit.

tax credit.

(3) The amount of Keystone State Apprenticeship Tax

Credits allowed to the certified employer as specified on the

final certificate of eligibility.

(4) The number of each of the first-year apprentices,

second-year apprentices, third-year apprentices, fourth-year

apprentices and fifth-year apprentices and which individuals

are considered disadvantaged youth.

(b) Recommendations and publication.--The secretary shall

include in the report under subsection (a) the relevant

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Apprenticeship Tax Credit and other available funding,

particularly targeting industries and fields of business not

currently taking advantage of apprenticeships.

Section 2. This act shall take effect in 60 days.

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