PRINTER'S NO. 2173
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1648
Session of
2019
INTRODUCED BY WHEATLEY, ROZZI, HILL-EVANS, KULIK, LONGIETTI,
ULLMAN, YOUNGBLOOD, READSHAW, CIRESI, SCHLOSSBERG, MURT,
CALTAGIRONE, McCLINTON AND MADDEN, JUNE 18, 2019
REFERRED TO COMMITTEE ON FINANCE, JUNE 18, 2019
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 a 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.
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:
"Certified teacher." A teacher who is certified by the
Commonwealth and currently employed as a teacher.
"Classroom expenses and supplies." The term includes books,
supplies, computers and related equipment, including related
software and services, other equipment and any other
supplementary materials used in the classroom which are not
reimbursed.
"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 under this
article.
Section 1704-B.1. Limitation on tax credits.
(a) Limit.--The total amount of tax credits approved by the
department shall not exceed $8,000,000 in any fiscal year.
(b) Amount of credit.--The amount of the tax credit may not
exceed $250 per applicant per tax year.
(c) Proportion of credit.--If the total amount of eligible
classroom expenses and supplies in a taxable year exceeds
$8,000,000, the department shall equally divide the amount of
the tax credit per applicant.
Section 1705-B.1. Application.
A taxpayer may apply for a tax credit in a manner prescribed
by the department.
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Section 1706-B.1. Administration.
(a) Audits and assessments.--The department has the
following powers:
(1) To audit a taxpayer claiming a tax credit to
ascertain the validity of the amount claimed.
(2) To issue an assessment against a taxpayer for an
improperly issued tax credit. The procedures, collection,
enforcement and appeals of any assessment made under this
section shall be governed by Article II.
(b) Guidelines and regulations.--The department shall
develop written guidelines for the implementation of this
article. The guidelines shall be in effect until the department
promulgates regulations for the implementation of the provisions
of this article.
Section 1707-B.1. Unused tax credit.
A taxpayer may not carry back, obtain a refund of, sell or
assign an unused tax credit.
Section 2. This act shall apply to taxable years beginning
after December 31, 2018.
Section 3. This act shall take effect immediately.
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