PRINTER'S NO. 950
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
810
Session of
2023
INTRODUCED BY MUTH AND KANE, JUNE 23, 2023
REFERRED TO FINANCE, JUNE 23, 2023
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 tax credit and tax benefit administration,
further providing for definitions; and providing for Working
Family Income Tax Credit.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "tax credit" in section 1701-
A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, is amended to read:
Section 1701-A.1. 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:
* * *
"Tax credit." A tax credit authorized under any of the
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following:
(1) Article XVII-B.
(2) Article XVII-D.
(3) Article XVII-E.
(4) Article XVII-G.
(5) Article XVII-H.
(6) Article XVII-I.
(7) Article XVII-J.
(8) Article XVII-K.
(8.1) Article XVII-L.
(9) Article XVIII.
(10) Article XVIII-B.
(11) Article XVIII-D.
(12) Article XVIII-E.
(13) Article XVIII-F.
(14) Article XVIII-G.
(14.1) Article XVIII-H.
(14.2) Article XVIII-I.
(15) Article XIX-A.
(15.1) Article XIX-C.
(16) Article XIX-E.
(16.1) Article XIX-F.
(17) Section 2010.
(19) Article XX-B of the act of March 10, 1949 (P.L.30,
No.14), known as the Public School Code of 1949.
(20) The act of December 1, 2004 (P.L.1750, No.226),
known as the First Class Cities Economic Development District
Act.
(21) 12 Pa.C.S. Ch. 34 (relating to Infrastructure and
Facilities Improvement Program).
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(22) Any other program established by a law of this
Commonwealth in which a person applies for and receives a
credit against a tax. This paragraph shall not apply to a
credit against a tax liability as a result of an overpayment.
* * *
Section 2. The act is amended by adding an article to read:
ARTICLE XVIII-I
WORKING FAMILY INCOME TAX CREDIT
Section 1801-I. Scope of article.
This article relates to the Working Family Income Tax Credit.
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.
"Eligible taxpayer." A taxpayer eligible to receive a tax
credit under section 1804-I.
"Federal Earned Income Tax Credit." The Earned Income Tax
Credit provided under 26 U.S.C. ยง 32 (relating to earned
income).
"Tax credit." The Working Family Income Tax Credit provided
under this article.
"Taxpayer." An individual subject to the tax under Article
III.
Section 1803-I. Working Family Income Tax Credit.
(a) Application of tax credit.-- An eligible taxpayer may
apply the tax credit against the eligible taxpayer's tax due
under Article III.
(b) Spouses who file separately.--In the case of spouses who
are both eligible to receive the tax credit and who file a joint
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Federal tax return but who elect to determine their taxes
separately, the tax credit may only be used by the spouse with
the greater tax otherwise due, computed without regard to the
tax credit.
(c) Amount of tax credit.--The tax credit shall be equal to
30% of the taxpayer's Federal Earned Income Tax Credit for the
same taxable year or, for a taxpayer not currently eligible for
the Federal Earned Income Tax Credit, 30% of the amount the
taxpayer would otherwise be eligible for under the Federal
Earned Income Tax Credit for the same taxable year.
(d) Credit refundable.--If the amount of credit which the
eligible taxpayer is eligible to receive under this section
exceeds the taxpayer's tax liability under Article III, the
department shall refund the excess amount to the eligible
taxpayer.
Section 1804-I. Eligibility.
A taxpayer is eligible to receive a tax credit if the
following apply:
(1) The taxpayer lived in this Commonwealth for more
than one-half of the preceding taxable year.
(2) The taxpayer satisfies at least one of the
followi ng:
(i) Is eligible for the Federal Earned Income Tax
Credit.
(ii) Is filing with an individual taxpayer
identification number and is otherwise eligible for the
Federal Earned Income Tax Credit.
(iii) Has a qualifying child for the taxable year
and is at least 18 years of age, but has not attained 25
years of age before the close of the taxable year, and is
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otherwise eligible for the Federal Earned Income Tax
Credit.
(iv) Has no qualifying children for the taxable year
and is at least 21 years of age, but has not attained 65
years of age before the close of the taxable year, and is
otherwise eligible for the Federal Earned Income Tax
Credit.
Section 1805-I. Regulations.
The department may promulgate rules and regulations to
administer and enforce this act.
Section 3. This act shall take effect in 60 days.
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